Most of us are hardwired to want to retire as soon as possible. Who wouldn’t want to spend time with their spouse and/or kids pottering around the garden or taking a few of those well-earned cruises? However, the reality is that even when they hit their mid-60s, most people simply can’t afford to retire.
It is natural to feel anxiety with the passing of time. Here are some things that you should consider when deciding whether you can afford to retire.
Don’t underestimate how much money you will require.
Possibly the biggest mistake that people make is underestimating how much they will need in retirement. Common mistakes include:
-Failing to predict how long they will live
-Failing to take into consideration the rising cost of living
-Failing to set a budget beyond the essentials
Obtaining some decent financial advice while you are still young enough to turn things around could prove to be one of the best decisions that you will ever make.
Don’t assume that your business will meet all your needs
Having spent the best part of your working life building a successful business, it is easy to fall into the trap of assuming that there is enough equity in there to give you the comfortable retirement that you deserve. While that may be the case in some scenarios, it is not always the case. Don’t make your decision based on the assumption that you will easily be able to sell your business, and don’t underestimate the advances in technology that are eating into the market share.
Getting financial advice can give you peace of mind and help you find alternative solutions should you need them. Software for financial advisors can make the job of supporting you so much easier https://www.intelliflo.com/financial-adviser-software.
Doing the digging
Retiring properly requires a fair amount of planning. Here are some important things that you should consider before you make the commitment to make the leap.
-Have you checked how much you are likely to receive in state pension?
-Have you tracked down all of your pensions from previous employers?
You might be surprised by how quickly they can add up and how many people choose not to draw them, either because they have forgotten about their existence or because they simply can’t be bothered with the inconvenience.