When Can You Retire?

When Can You Retire?

At what age do you see yourself retiring?

Is there a certain lifestyle that you envision?

On many occasions, you have most likely reached a point, especially during a turbulent period at work, when you have thought about retiring early. But, with the probability of winning the lottery as fragile as a house of cards, and against a financial crisis and uncertainty, can you still achieve financial security and retire early? 

In the article below, we will discuss the best practices for achieving financial stability.

Steps Towards Early Retirement                                              

Before all else, the best step toward early retirement is to ensure you have a reliable plan for the journey ahead. Map out where you want to go and determine the best route to get there, making sure to prepare for any unexpected bends in the road so you don’t get lost along the way.

Since every journey is different, consider your planned lifestyle and the size of your retirement fund when choosing your retirement method.

Step 1: Planning For The Long Journey Ahead

To guarantee that you have the trip of a lifetime, you must give yourself enough time to prepare. That’s why, for investors, a balanced portfolio can prepare you for any rough patch life may throw at you.

If you can, you may want to increase your pension contributions, and if your employer matches your contributions, this can accumulate into added earnings to help make up for market losses.

Investing in a pension wrapper can assist you in planning for your retirement, helping you build up your retirement pot the way you want. In self-invested personal pensions (SIPPs), the level of risk is up to you, allowing you to be more flexible with your investment choices. This flexibility allows you to spread the risk, especially if some investments do poorly. However, they also tend to be more expensive than standard pensions, and active management is essential to take advantage of the wider investment choices available.

This type of investment is not suitable for everyone, and only those with experience managing investments actively should consider them. 

To understand what level of investment risk you are prepared to take, especially if you are considering different assets to invest in, you should speak with a financial adviser.

Step 2: Looking at Layovers

What happens when retirement is fast approaching, but markets are volatile, and inflation is deflating our wallets? Well, it may result in some people delaying their retirement date. But this does not have to be a negative impression – by postponing retirement, the pension pot has that vital opportunity to grow.

However, for those who still wish to enjoy their retirement early, with a Defined Contribution pension pot, you can take advantage of Flexi-Access Drawdown, which allows you to access your pension pot as early as 55. With this Drawdown, you can withdraw up to 25% as a tax-free lump sum, whilst the rest stays invested.

Step 3: Enjoying the Journey

If you are already retired and your fund has suffered a visible decline, this can have had a massive impact on your wellbeing, leaving you worried about the future. By speaking to a financial adviser about your situation, they can evaluate your options, assess your risk, and provide a bespoke solution.

You can estimate your retirement income with our retirement calculator here: https://eightwealthmanagement.co.uk/financial-calculator/

Everyone has different life events, circumstances, and objectives, but we can map out a plan with you and help you on the journey. So, if you are looking for financial advice, we can help by applying the best financial planning to help you achieve your dream financial future.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up.  You may get back less than you invested.

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