Planning for retirement: What do I need to consider?

Retirement is a time that you should be able to spend doing what you enjoy with those that you care about. Planning for retirement is important, both financially and emotionally, so that when you feel that you are ready, the transition to retirement will be as stress free as possible and you can enjoy the fruit of your working life.

planning for retirement

Decide when you want to retire

In the UK the average age of retirement is currently sitting at 66, which is also the state pension age, but deciding to retire later could mean that you will have access to more money as it will not be stretched over the longer period of time. Deciding on the age that you would like to retire, whether you feel that you are financially stable enough to consider early retirement or if you decide to delay it, is a personal decision and planning early is key.

Budget for retirement

Work out how much state pension you are entitled to, any workplace pensions that you have and also any savings and then decide on a budget that you will try to stick to in order to make sure that you are free of financial worries during your retirement.

There could be a number of different pensions that you are entitled to depending on the places that you have worked at and it is worth tracing any pensions that you have contributed to. Without the additional benefits that you may be entitled to, most people are eligible to receive state pension, the amount is dependable on the year in which you were born, it is important to budget and organise your finances so that it is viable for you to live comfortably off this amount.

Pre-plan for your funeral

If it is not something that you have organised before retirement, taking out a prepaid funeral plan is beneficial for many reasons. Not only does a funeral plan mean that you have taken away the stress from your loved ones but it also allows you to lock in the cost of the Funeral Directors’ services at today’s prices. Taking out a funeral plan prior to retiring means that you have longer to spread the cost of the plan, making it more manageable and affordable for some.

According to a survey by YouGov and Funeral Guide*, only 16% of retirees have a funeral plan meaning that they will pass both the emotional and financial burden to their loved ones. Many funeral plans can be paid either in full or monthly instalments, making it affordable to you and something that you can work into your pension budget. Capital Life’s funeral plans also include a free will service, which is another important asset to organise before retirement, so that when the time comes your loved ones will not have the stress of organising your estate.

Looking after your wellbeing in retirement

Even though planning for retirement financially is essential, it is also important to consider how you will spend your time during retirement and look after your wellbeing. Retirement is a time where there can be a lot of changes happening around you and being able to prepare for this mentally and thinking about how you will adapt to the changes is vital.

You can spend more quality time with those who mean the most to you, but with a lot of spare time available to you it is also a great time to find a new hobby or try new things to keep you occupied; learning a new skill, whether it be taking an online course or joining a class. Many people use retirement as an opportunity to travel as they are free from the time and work restrictions that they previously faced.

In order to see how Capital Life can help you plan for your retirement by taking out one of our funeral plans or if you would like to speak to one of our helpful advisors about the payment options for our plans, contact us or call us on 0800 411 8683.

We can also assist with Wills, Inheritance Planning, Probate, and LPAs.