Are you giving retirement a second thought?

May 19, 2023

Recent figures suggest that over a third of over-55s think they will work beyond their state pension age.

The current economic climate is causing many people nearing retirement age to have second thoughts about whether to stop working or to postpone retirement for a while.

Not only that, but as well as more people planning on working beyond State Pension age, some are deciding to return to employment after having already retired.

More than 2.5 million people aged 55 and over expect to feel the impact of the long-term effects of the current financial pressures caused by inflation and cost of living increases, and a new survey has revealed that half of people of 55 don’t believe that their pension will be enough to fund their retirement.[1].

Nearly a quarter (23%) aren’t sure how long their retirement savings will last, and almost one-fifth (18%) admit to not having any retirement savings in place to support them when they stop working.

At the same time, half (46%) of these older workers who are expecting to work past their State Pension age are concerned about how that will impact their enjoyment of their later years. Health, and the impact on it of working longer, is a major concern, as is whether they will be able to remain employed older if they need to work.

People also report being anxious about age-discrimination and not being able to spend enough time with family if they remain in work or return after having retired.

Looking at it from another perspective, predictions are that the older workforce is expected to be crucial to the UK’s economy in the coming years – so it’s not just about you needing to work for longer than you might have planned, but about the workforce needing you.

Help you to enjoy the retirement you’ve earned.

If you’re concerned about any of the issues above, you’re not alone. Most people want to feel in control of their financial circumstances, and to be confident that they can enjoy the retirement they hope for.

That’s where an independent financial adviser (IFA) can help.

If you’re nearing retirement age, and uncertain about whether your pension pot contains enough for your needs (or haven’t yet saved for your retirement), there are almost always options available to you.

You may have other assets which, wisely realised and invested, could help you to fund your retirement, or perhaps you’re actually in a position to save more than you imagine over the next few years. It’s also possible that you simply don’t know how much is in your pension pots – or that you’ve lost track of some funds somewhere along the line.

Whatever your circumstances or concerns, your first step to taking control of your retirement plans is to talk to an experienced IFA.

At Talis IFA, we take a life-first, money second approach to your financial planning.

What does that mean? It means that, before we start looking at the numbers, we spend time with you to understand your life, your aims and aspirations. We’ll look at what you want from your retirement, without making any assumptions until we’ve talked to you in depth.

We’ll discuss whether you plan to downsize, or stay in a larger family home, travel, support younger generations of your family through education or buying their first family home…or anything else you have in mind. Everyone’s idea of a comfortable retirement is different!

Then we’ll look together with you at your options. We’ll always give you transparent, straight-talking advice in plain English, and if your current investments are already in the best shape they can be, we’ll say so. We’ll never recommend a product unnecessarily, and we’ll certainly never give you the hard sell.

You may be able to take advantage of recent increases in the amount you can save tax-free into a pension and top up your pot. Or you might be able to get a better return on your investment by consolidating multiple pension pots.

Everyone’s circumstances and attitude towards investment risk are different, so if you’d like to look again at whether you’re in a position to retire, your first step is to get in touch and have a discussion.

Click here to find a Talis IFA.

Source data:

[1] Survey conducted by Opinium among 2,000 UK adults between 21–25 October 2022.

A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available.

Your pension income could also be affected by the interest rates at the time you take your benefits.