You May Need to Rethink your Retirement Plans
If you feel you are not ready or financially able to leave the world of work as your retirement looms, the reality is you may not have a choice. Not all employers are willing to employ people who are in retirement, and this fact alone cuts down the chances of working in retirement.
This post looks at why sound financial planning while you are still at work, is a better, less risk option than hoping your employer or a new employer will keep giving you work.
Surveys in America
Recent surveys from America give a good indication to the state of retirement in western countries. In 2014, a Merrill Lynch Bank of America survey showed that 17% of baby boomers believed they would be working in retirement. The figure jumped to 26% for the millennial generation.
Another survey from Bankers Life, gives more indication that working in retirement was not going to be easy. Around 2,300 retired boomers and 1000 middle income earners (household income is between $25,000 and $100,000 per year) were surveyed. Of those surveyed many did not get an opportunity to work as long as they would have liked, while 28% of retired boomers earned significantly less than they had before they retired.
The bonus to this was that retirees who could offer consulting services were often employed on this basis.
Will your Health Affect your Retirement Plans?
Health is another area which can hamper retirement plans. We never know what is going to happen around the corner. A recent study showed that 39% of retirees who wanted to work in retirement could not due to health reasons. This obviously impacts your retirement plans and how much cash you have available to spend.
Tax Efficient Savings the Key to a Good Retirement
One aspect which is key to retirement is being able to identify opportunities to save and invest in the most tax efficient way possible. Although it is not wildly known, a lot of what you save and invest disappears in tax. You never see this money so you probably never think about it, but just imagine how your pot will build if you saved a £500 a year in tax payments over forty years.
That is an extra £20,000 to help you in retirement.
Award Winning Financial Planning
To help you build a solid financial, tax efficient retirement plan, you will need the help of a financial planner. This will enable you to take advantage of the best financial products geared to help you save better for your retirement.
To get started, click here and complete the CALL BACK SERVICE form. You will have a less risky and more prosperous retirement.