Getting ready for your retirement journey

As you approach the last few years before your planned retirement there are some key things to consider.

There are many things to consider as you approach retirement. It’s good to start by reviewing your finances to assess whether your future income will allow you to enjoy the lifestyle you want.

If you’ve saved into a pension scheme during your working life, you’ll need to decide how you’ll use your pot. The way that people receive their pension income has changed over recent years, with more flexible options meaning that many can choose to enjoy their retirement in a way that best suits them.

Financial planning should also address a range of other issues, such as: how long you are prepared to keep working for; your State Pension entitlement; how much income your savings will provide; and how much money you want to pass on to your family. You may also need to consider how much to have in reserve that could be used to pay for care in later life.

While the options you choose should suit your own retirement plans, they may also need to provide for others, such as a spouse, civil partner or dependant. Indeed, couples need to plan together so that, when the time comes, finances support the surviving partner.

Knowing how your needs may change over the next few decades will mean you are better prepared for the challenges that lie ahead. It is like getting ready for a journey – it’s unlikely to go exactly as planned. But the better the plan, the better the likely outcome.

In this video, Tony Clark, Head of Retirement Marketing at St. James’s Place, looks at your income options as you shift away from work and into retirement.

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