Being at home under lockdown can either be a chance to spend more time with the family, enjoy your hobbies or learn a new skill – or it can leave you ready to escape the four walls and get back to work.
Either way, it could be a foretaste of what life could be like after retirement.
The coronavirus pandemic has been spurring many to reassess their careers and their retirement plans. Some might be discovering the advantages of more family time, more flexible hours, and freedom from the long commute. But for others it is a reminder of the effects of reduced income, insufficient pension savings, and financial worries.
At Continuum, we believe that with the right planning and preparation you can look forward to the retirement you want.
How will you retire?
Retirement is no longer just a matter of a handshake and a gold watch and being put out to grass at the age of 65 or 60. You can choose when you will retire ( although your state pension age is fixed). You can also choose how you will retire. There are three ways to transition from your full-time job: full retirement, working part time and phased retirement.
The pandemic has forced all of us to reassess the people, experiences, and goals that mean the most, and caused many people to reconsider the route that is right for them.
Many people are actually reluctant to retire. Simply being a worker one day and then stopping altogether the next can come as something of a shock.
It means that stopping work can be very disorienting for those who are career focussed, and for whom work is the centre of their lives. If you’ve been putting off retirement because you simply can’t imagine how you would fill your days without working, the experience of social distancing might have opened your eyes to the wider possibilities of life. You may never want to go back to the grind.
Working in retirement
But you don’t have to stop work if you retire. Today’s retirees are healthier and more active than ever before, and even before the coronavirus pandemic, many were choosing to work after retiring. Some work past 65 because they love what they do. Others transition to part-time jobs that let them explore other interests while still earning, boosting their retirement and savings accounts so that their nest eggs keep pace with increased life expectancy.
Phased retirement is a variation on working in retirement, which lets you keep the job you love, with the challenges and responsibilities. However, you can steadily reduce the hours you spend on it, phasing into retirement and easing into a new routine where you’ll be spending most of your time at home.
You’ll also have some flexibility with your schedule, which will allow you and your partner to start finding ways to adjust to each other’s routines – which can be vital for a successful life as a retired couple.
Whether you are planning on cutting down your hours or giving up work altogether, you will need to ensure that you have the finances, as well as the necessary life skills in place.
At Continuum we can work with you to create your retirement plan. We can help you plan how you could build up the pension pot you need to have a choice in how you will retire – and we will show you the best ways to use that pot to provide the income and the security you need.
The one thing to remember is that it is never too early to start thinking about your retirement. The longer the pension savings have to grow, the larger your pension pot -and your retirement income – could actually be.
Lockdown gives you more time to spend on the things that really matter. So make sure you spend some time with a Continuum expert to make sure you have the plans you need in place.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.
The value of your pension and investments can fall as well as rise and you may get back less than you invested.
Accessing pension benefits is not suitable for everyone. You should seek advice to understand your options at retirement.
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