Retirement allows people to enjoy life outside of work, and often to reach later life goals which can be varied, but may also involve expense. In all circumstances, without the regular income of a salary or wages, it is likely Britons will have to forward-plan for this period in their lives to ensure they have enough. This will also involve working out if a person is truly ready to retire – which can be a big decision both financially and emotionally.
Mr Tait explained: “You need to weigh up your likely annual spending and calculate if you can afford to stop working.
“Future expenses are hard to predict, but to get a ballpark figure begin by taking your current regular outgoings – for example, bills and household expenses, travel and leisure costs, credit card or loan payments and mortgage costs.
“Then subtract any expenses you expect to no longer have when you retire.
“You’ll also need to consider adding in any new ones, maybe future travel plans or supporting your children with a property purchase.”
Mr Tait added that Britons will be able to access several online calculators which do the hard work for them, providing an estimate of how much the annual cost of living will add up to.
Alternatively, some may wish to do their own calculations, for example, by using a spreadsheet.
A third consideration is whether a person has enough saved – and this can be ascertained by adding up various sources of income to see if one is in the right position to retire.
Once again, online calculators can help Britons gain an estimate of the income they can expect.
However, Mr Tait stressed the important consideration is whether a person has a pot to last what could be 30 years or more in retirement.
If initial calculations do not provide the answer Britons were expecting, they may have to make some adjustments to achieve the retirement they are looking for.
Next, people may wish to consider what they miss from working, such as the social element of interacting with others, and potential mental health benefits.
While this might not be a financial consideration, it is one which may have a significant impact on Britons.
Finally, some people may wish to speak to a professional to gain further insight into their circumstances.
Mr Tait concluded: “A financial planner can give you all the advice you need on your finances, while also helping you strike the balance based on what’s important to you.
“A financial planner can also help to answer those big questions you might have: Will I have enough to live on? Will I still be able to support my family? How can I access my money? How much can I expect to receive each year?”
He stated financial advisers can often provide individuals with a tailored plan designed to meet their specific needs and set a person up amply for retirement.