For a start off, you have to make sure you don’t outlive your money. You just can’t afford to run out of money before you die.

You’ve got a retirement check list, right? Well probably not, it’s hardly the most exciting thing to be doing this weekend — but the potential benefit in doing this is hard to overstate. 

To successfully retire and let’s face it, a lot can go wrong, here are my four steps to take, as you get ready to retire. This will help ensure you don’t outlive your money. The last thing you want to do is outlive your money.

1. Be Sure You are Ready!

And I mean this in more than just one way.

First, make sure you are financially fit and ready. The average woman who is currently 65 years old today, will probably live until the age of 89 or there about; for a 65-year-old man it’s around 85. Interestingly, for both men and women, that’s about 2 years longer than back in 2000. We are all living longer. We expect this trend to continue – so you need to make sure as far as you can that you are not underestimating how much money you will need in retirement.

Secondly, what are your plans for what you will do with your time? Most of us have been working for decades and really should have a great retirement. Having a good idea what you want to do when you suddenly all that time on your hands is important.

2. Take Time to Talk With Your Other half.

Does your partner have the same ideas and thoughts about retirement as you?

I’m guessing that you’ve had some conversations about where you’d like to live or places you want to visit and what you’d like to spend your time doing. But what about everyday life? One of you may be excited to travelling and pursuing active hobbies, whilst the other may want to read and take on charity work.

Make sure you both know what lies ahead before it’s too late.

3. Set Up a Systematic Income Withdrawal Plan

It’s a good idea to arrange to receive monthly income from your investment portfolio, that is fixed and covers your known outgoings. Any natural income payments from your investments should be re-invested back into your portfolio. Automated and fixed income withdrawal will help you plan day to day finances more effectively.

So, how much should your withdrawals be? That depends on how much you need to your private pension and State Pension income. Taking more money out of your investments than you need for spending will leave you with too much money in your current account or deposit accounts. A good adviser can help you manage your income withdrawal needs.

4. Decide What Will Happen With What’s Left After You Are Gone

Making sure that you don’t run out of money is one thing and should obviously be your number one priority. But what are you plans for what will happen with any residual pension and remaining investments once you are no longer here? Once again, it’s a good idea to discuss this with your partner. I know it is not necessarily an easy conversation, but it is one that you should have.

If you can, put a clear plan in place, to ensure that your money goes to were you want it to, after you are gone. This almost inevitably means making sure you have a valid Will in place. Speak to your financial adviser as they will be able to guide on how best to structure your investments, so that they transition smoothly to the next generation.

Action Call

Contact us to today if you want to discuss your investment portfolio and retirement plans.. We can review your current situation and let you know what options are available to you.

If you would like to talk to about financial planning, please get in touch for a no-obligation meeting. Go to our website www.miadvice.co.uk and contact us via our “Get in touch” form on our home page or Contact Martin Dodd on 01902 742221.

Email us at financialplanning@miadvice.co.uk

It is advisable to take advice from a professional financial adviser when making major financial planning decisions.

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This article has been prepared in good faith and based on Midlands Investment Agency’s understanding of the law and interpretation thereof at the time of creation. The contents should not be regarded as specific advice and we always recommend that specific advice is sort from a qualified professional. No responsibility can be accepted by Martin Dodd or Midlands Investment Agency Ltd., for any loss that may occur by a person acting or refraining from acting on the basis of this article.

Martin Dodd author of the Financial Freedom Formula