We’re receiving lots of enquiries at the moment on the topic of retirement planning. That is interesting because the majority of people in the past would have asked us to look at their Pensions as products, but the important difference more recently is that people are actually asking us to help them plan for a better retirement.
To confirm, Pensions are a means to an end, not the end in itself. Simply having a Pension isn’t the job done. Investing into a Pension means very little unless you know why you’re doing it and whether you’re doing it right.
I read an article recently that suggested the average retirement income people would like to have when they get to retirement age is £27,000 per annum. The average Pension pot when people get to retirement was expected to be £167,000, and what’s concerning is that the people surveyed thought this would be good enough.
A Pension pot of £167,000, if you’re withdrawing income at 4% from that pot would give you an income of £6,680 per annum!
So there is clearly a mismatch between what people want and what people are actually doing to get it. The reason I’m so pleased to hear from people that want to plan ahead for their retirement is that I know they will be the few that are truly happy with their retirement plans, and ultimately will be able to enjoy their retirement free from financial restrictions.