Learning from the retired

Balancing financial security with mental wellbeing

The experiences of today’s retirees offer a wealth of knowledge for anyone planning their retirement. By observing the paths already taken, future retirees can glean valuable lessons from the triumphs and challenges faced by those who have navigated this transition before them. This collective knowledge is crucial in shaping a retirement plan that balances financial security with mental wellbeing.

Financial security begins with diligent saving and investment strategies, which should be initiated as early as possible. Utilising employer-sponsored retirement plans, diversifying investments and seeking advice from a financial professional are all essential steps toward building a successful retirement fund.

Revisiting financial plans

Current retirees were asked if they would do anything differently in how they approached their retirements, and the research identified two in five (40%) said they would have done[1]. Almost one in five retirees (17%) said they would have increased pension savings while working, and one in ten (12%) would have made lifestyle adjustments while working to save more for their later years. Nearly one in ten (8%) said they wouldn’t have left work when they did and should have chosen to retire later.

As the third chapter of life, retirement should be a positive experience, and for many, that is thankfully the case. However, with the benefit of hindsight, there are some valuable lessons for us all to learn from the current generation of retirees. Most regrets centre around money, wishing more was saved earlier, and often making choices around lifestyle to allow that extra cash to go into the pension.

Impact of delayed retirement

Many also wished they’d stayed on and worked later, which can significantly positively affect both financial wellbeing and mental health. This research highlights the need to have a plan and seek advice at the earliest opportunity. We can advise you if you are on track and keep your plan on track as you navigate through the myriad of investments, generating replacement income, the tax system, estate planning and inheritance.

The insights gained from current retirees underscore the importance of strategic financial planning. Individuals can secure a more stable financial future by increasing pension contributions and making conscious lifestyle choices that promote savings. Additionally, extending one’s career bolsters financial reserves and contributes to a sense of purpose and mental wellbeing.

Ever-changing financial landscapes

Engaging with a professional financial adviser early in your career can provide invaluable guidance. We can help you stay on course amidst ever-changing financial landscapes, ensuring your investment strategies align with your long-term goals. Expert advice is crucial for a fulfilling retirement, from navigating the complexities of tax regulations to optimising inheritance plans.

Taking proactive steps today can lead to a more comfortable and rewarding retirement tomorrow. Start by assessing your current savings and consider increasing your pension contributions. Evaluate your lifestyle choices to identify areas where you can cut costs and redirect those funds towards your future. Moreover, contemplate the benefits of a phased retirement, allowing you to continue working part-time while enjoying the leisure of retirement.

Ready to get your retirement plans in motion?

Planning for retirement can be overwhelming, and many questions must be considered. Should you invest in private or workplace pensions? Are your savings adequate? Which investments are best for you? Let us help you navigate these crucial decisions with professional financial advice. For more details, please contact us.

Source date:

[1] Research conducted by Opinium among 663 over-55s who said they were retired, with fieldwork conducted between 19–22 March 2024.

THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL, OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

THE VALUE OF YOUR INVESTMENTS CAN GO DOWN AS WELL AS UP, AND YOU MAY GET BACK LESS THAN YOU INVESTED.

THE TAX TREATMENT IS DEPENDENT ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN FUTURE.