Basic steps for savvy retirement saving
How will you spend your time when you stop working? By deciding what kind of retirement you want, you can start savvy saving now.
What does retirement mean to you? Do you see it as the end of something, or will it be the start of something new? Will you be happy to wave goodbye to your job, or would you prefer to continue working? Maybe you plan to spend more time with your family, or to take advantage of the opportunity to travel?
There has never been a one-size-fits-all retirement, which is more true now than ever before – as there are multiple options available to retirees than there were in previous generations. Not only is life expectancy longer than it used to be, but we’re staying fit and active for longer – you’ve heard that 60 is the new 40, right?
So, back to that question: what does retirement mean to you? Finding the answer to it is the first step in making it happen. With an idea of how you want to spend your retirement, you can then start to work out how much income you’ll need to make it happen. We all work better when we set a goal – it’s human nature – so picture your ideal retirement and then it should be easier to save for it.
Not sure where to start? From our recent survey, it’s clear that you’re not the only one. Here are some ideas to help you work it out, and get an idea of what kind of income you might need:
- Will you need to ‘do’ something? More people are working in ‘retirement’, either through choice or necessity, but that doesn’t necessarily mean sticking with what you’ve always done. It could mean starting your own business, finally doing that part-time job in a bookshop you’ve always fancied, or taking on some voluntary work.
- Will you stay where you are or do you want to live somewhere else? If so, will you downsize and free some money tied up in the house, or do you want to live somewhere that’s more expensive?
- Do you want to learn something new, or spend more time enjoying your hobbies?
- Do you want to travel? If so, where to and how often?
- Do you want to be able to help out your children, whether financially or by providing childcare for your grandchildren?
Working out the answers to these questions should help you start to create a clearer picture of the retirement you would like to enjoy. You need to know what that goal looks like! To help you work out the income you will need to fund it, try our handy retirement calculator.
This blog is intended to provide information, not financial advice, to help you make an informed decision about savings and investments. We do not offer financial advice. You should contact a financial adviser, who may charge a fee, if you want financial advice.