The Importance of Planning Ahead with Cashflow Forecasts
Queen Elizabeth II is celebrating her 90th birthday and a lot more of us can look forward to the fact we’re going to live longer; but what impact will this have on our retirement savings?
With a longer life expectancy, the importance of financial planning has never been greater. Everyone is different. Like our Queen, some may choose to work well beyond retirement age because they’re healthy and like what they do. Others may have no choice and need the money they earn just to live.
On average, most people in the UK want to retire at 64 years of age – with an annual retirement income of £23,000. Another 40% would like a period of semi-retirement starting at age 59. This is what people want, but nearly half of people surveyed are not confident they will achieve their retirement goals. This means many more people might find themselves faced with no choice but having to work way beyond the state retirement age.
It’s vital that people do something about the gap between what they would like and reality when it comes to their retirement savings. The average person in the UK puts just short of 7% of their salary a month into a workplace or personal pension. This is simply not enough to hit their targets. Contribution levels need to be closer to 15-20%. Our cashflow forecasts allow us to show you several ‘what if’ scenarios to help you plan for the future in a way that is easy to understand.
Living longer needn’t be such a challenge if you start saving as early as possible, and think long-term with your investments. Then, hopefully, many more of us will be celebrating our 90th birthdays in the way we want.
Contact ES Walton today to find out how our Financial Planners could help you.Contact Us