Quandary for a pre-retiree

Andrew Sutherland | Supplied

A Gone are the days when we took a job, worked for an employer for 20 or 30 years and walked away with a secure income for life. More often, today’s pre-retirees have worked often for several employers and have various pensions some of which may be invested, some of which may guarantee income, and some of which may be a combination of both.

Moreover, the State Pension Age continues to advance away from the time in life at which many seek to move into retirement.

No wonder then that a 2023 study found that 41 per cent of UK adults aged over 50 who aren’t yet retired are concerned about living in hardship in retirement. It is harder now than it has ever been to visualise our financial futures once we cease working.

As a chartered financial planner, I enjoy partnering with pre-retirees to establish their hopes, aspirations, and fears for the present and short term. From there, we can review their existing financial arrangements and identify the true strength –or otherwise – of their position. We establish whether they will be able to achieve what they want to in retirement, or if more action is required first.

We can advise on incorporating inflation into planning, address how to invest into and through retirement, and help you gain knowledge about the State Pension, and how to get the most value from various benefits which are sometimes hidden within pensions.

People are generally fearful about their prospects when they stop earning income but, going through a financial planning process, it all becomes clear and then planning for what you want to do and achieve is far simpler – even enjoyable! Frequently when working with pre-retirees, we will uncover together that their financial position is far better than they may have thought beforehand.

All of this could mean that the pre-retiree client I am lucky enough to engage with can either cease work with confidence or continue to knowing how long they are likely to need to carry on, and the ramifications of potentially earning more for less time or indeed earning less.

Importantly, however, even when the financial position doesn’t permit imminent retirement, we can establish together a plan of action to provide the right circumstances.

If working through the complexities of pre-retirement finances sounds or feels stressful to you, and you would like to work with a financial professional partner, get in touch with a regulated financial planner and start making moves towards a comfortable and confident retirement.

Find out more here

Acumen Financial Planning Ltd is authorised and regulated by the FCA, FRN 218745. The content of this article is the opinion of Andrew Sutherland and does not constitute advice or recommendation