The quality of life you want in the future will depend on what you contribute in the present. Planning your finances can help to ensure that you and your family have peace of mind, so that you could look forward to a secure retirement.
Don't let worries keep you from planning
Retirement is a major change in life, and sometimes it's hard to plan beyond it - especially if you're worried that you won't have the funds you need. In fact, in our 2012 survey our findings reveal that 67% of UK respondents feel their retirement preparations are inadequate.
Read more about how retirement is changing - see our Future of Retirement report.
But it's best to plan early for retirement if you can. And the first step needn't be reviewing your finances. It can be to set out your retirement goals. For example, you may want to...
- keep working
- volunteer
- think about moving home
- travel more
- take up some new hobbies
It's best to plan early for retirement if you can.
How much income do you need?
You may find that financial experts will advise you to consider building retirement income that is 60% to 80% of your current income. However, this depends on the lifestyle you want to have. Sometimes with more free time you spend more on travelling or interests like home improvements, golf or going to concerts or the theatre.
How can you find out what your income will be?
You can get an overview of your finances with our retirement plan simulator.
Do you really want to give up work?
For many of us, retirement is a chance to put working life behind us. But it might also be a chance to work the way you want to work. You might reduce your hours, start your own business or try something new. By continuing to work into retirement, you'll not only continue to enjoy an income but you'll carry on your professional interests and retain a sense of fulfilment from work.
Do you want to volunteer?
If you have a pension that can support you comfortably, but are worried about boredom in retirement, consider taking on volunteer work. It means you can support a cause you care about and it reduces the shock of a completely changed routine.
There are several websites were you could find a placement. See the government's advice on pensions and retirement planning at Gov.UK.
Are you depending on a non-traditional pension?
A lot of business owners view their business as their retirement fund. If this is true in your case, it's important to consider how to access those funds.
You may want to sell all or a part of your business - and many people like to stay involved.
Will your family help you out?
Everyone would prefer that their retirement didn't cause any problems for their family, but sometimes things can work out well. For example, if you spend part of your free time looking after your grandchildren, your children will save on childcare - and you might find it easier to accept a little help on larger purchases.