Pension Planning

The world has changed forever. Just compare how you live your life today to how your parents and grandparents lived. The way we live is different from our ancestors and the time we spend in retirement and how we spend this time is different. Naturally, therefore, it makes sense that the way we look at funding our retirement will be different too.

Advances in medical care and general wellbeing mean that you can expect to enjoy a longer and more active retirement than your parents and grandparents. Recent surveys have shown that if you reach 65 there is a strong likelihood that a man will live another 19 years and a woman 22.

We’re able to continue to play sports and take part in activities at ages our parents would not have dreamed of. Furthermore, we might see retirement as the opportunity to take up a new challenge, such as learning to sail, pass our Skipper’s exams and charter a yacht to the sun.

With increasing globalisation and as the world becomes increasingly smaller, we are afforded opportunities that may have been out of reach of our forebears. Economic circumstances have changed too and global travel is something many of us enjoy and plan to do more of long into the future. Also, for many people these days, it is not unusual to own two homes in different countries and spending the time between them, perhaps enjoying the winter months in the sun.

Cost Of Retirement

But there’s no avoiding the facts – a longer, more fulfilling and more active retirement also means a more expensive retirement. Which is why, again, we have to think differently from our parents when it comes to funding this all important time of our lives. Gone are the days of sitting back and accepting your state pension and whatever rate of income you were granted when you used your pension ‘pot’ to purchase a traditional annuity.

With governments less and less able to provide and traditional annuities these days unable to generate the type of income we want and need, the onus is on us to take a different approach towards funding our retirement. One obvious step is to put away more money – and investing as much as you can as early as you can is something that should be heartily encouraged. Putting off until tomorrow what you could start today could have a significant impact as to whether your retirement is more cloudy than sunny.

But we need to consider other ways of maintaining sufficient funds. For example, it is no longer perceived as unusual to stay invested into your retirement. Also, the product range available is more varied and flexible than the options available to our parents. Where they may have had to purchase their annuity on retirement, Qrops allows a way to remove this requirement and also allows us to keep a greater control over our investments and over our future.

We all work hard and we want to be able to play hard well into our retirement. With careful planning, a willingness to think differently and a commitment to invest for your retirement, you could be putting yourself in the prime position to enjoy a long, active and sunny retirement for a long time ahead.