Retirement planning - make it one less thing to worry about
Written by Paul Dodd on June 16, 2015.
A quick flick through the financial news online is liable to leave one feeling just a little bit gloomy about the future. Europe is still having a tough time of it financially with political unrest (take a bow Ukraine and Russia), weak growth, potential euro devaluation, fear of a looming recession and much talk in the press about the prospect of quantitative easing. With so much uncertainty in the world one thing is for sure, there’s a lot to worry about.
Another certainty that we all have to face (optimistically assuming we don’t meet an early grave) is that one day we will retire. And yet in spite of that, I meet an alarming number of otherwise intelligent individuals who are woefully unprepared financially for retirement.
The UK government bases its retirement policy on the rule of thumb that people will spend a third of their adult life in retirement. If you live to 100, which is increasingly likely - Princess Charlotte and other babies born this year have a one in three chance of reaching their century - that’s over 27 years!
Have you thought about the age at which you plan to retire? Are you assuming that you will be able to do so comfortably at 65? How much a year will you need to live off when you are no longer working? And most crucially of all, do you stand a chance of accumulating a big enough retirement fund to generate that amount for the rest of your days – if you are lucky, for 27 years or perhaps even more?
These are key questions which all of us should be asking ourselves and spending some time thinking about, yet many of the people I meet seem to spend more time choosing the colour of their car or picking a new kitchen than considering how they will afford the lifestyle they hope for after they have retired.
Not all of us are gifted with managing finances which is fortunate for me as a financial planner or I’d be out of a job! Maybe thinking about your retirement fund is so overwhelming that you can’t face tackling it. Perhaps you find it as gloom-inducing as reading the news or you are put off by the number crunching or the often over-complicated and off-putting terminology surrounding pensions.
The good news is that I can help you get to grips with your financial affairs as I have for I many expats in Phnom Penh - probably including many people that you know. With the experience that I have gained over the many years I have worked here I am uniquely placed to advise you whether you need a review of your current pension arrangements to ensure that your money is working as hard for you as it can be, or you are starting a retirement fund from scratch.
Let’s face it, there are enough things to worry about in the world that you can’t do much about but this is something you can. Do feel free to contact me for impartial advice to help you get on track so that you can spend that one third of your adult life that you are retired having the best possible time that you can free of financial worries.