It’s not unusual to feel apprehensive as you start thinking about stopping work and enjoying the retirement you have worked hard for.
 
Indeed, a recent PensionsAge report revealed that 60% of UK adults do not think they will be able to afford even a moderate standard of living once they retire [1].
 
There’s no definitive answer or simple calculation when it comes to knowing if you have sufficient assets to stop working.
 
Your own financial needs will depend on the lifestyle you want to lead, your living expenses, and your financial commitments both now and in the future.
 
What is “enough” when it comes to funding your retirement?

Everyone has different plans for when they are no longer working.
 
Your own may well include popular bucket list items like expensive holidays, as well as less high-profile activities such as voluntary work or learning new skills.

You will also need to consider your other financial commitments, which might include other family members you may have a financial responsibility for.
 
It’s important not to assume your outgoings will reduce once you stop working. After all, most of your current discretionary spending is probably done at weekends, and when you stop working, they will effectively last for seven days.
 
So, planning your future finances around your retirement goals and future obligations could help guide you towards understanding how much “enough” will be and the amount you will need to save to enjoy the type of retirement you’ve dreamed about.

A financial planner can help you work out how much is “enough”

It can be advantageous to get expert help when it comes to planning your finances after you stop working.
 
With a detailed understanding of your goals and commitments, along with an analysis of your current assets, a financial planner can give you a clear idea of how much will be “enough” to fund your ideal retirement.
 
They can also help you understand how long your money will need to last; giving you peace of mind that you’ll avoid the risk of outliving your assets, or having to scrimp and save, so you can comfortably enjoy your lifestyle with confidence.

Cashflow modelling can help you visualise your future finances

While there’s no such thing as a crystal ball, an effective cashflow modelling programme is arguably the next best thing! It’s a software tool that can give you a view of your future from a financial perspective.

Starting with basic information such as your current income and expenditure, along with the current value of your assets, it will provide you with a detailed projection of your future wealth and the income you need throughout your retirement.
 
This will enable you to make informed decisions about your finances, and flag up any adjustments you may need to make to stay on track to achieve your goals.
 
Cashflow modelling can also help you look at the effect different scenarios might have on your finances. These could include a period of high inflation, or retiring earlier than you’d originally planned.
 
Get in touch

To find out how we can help ensure you have “enough” to enjoy the retirement you deserve, please get in touch.
 
Email [email protected] or call us on 0800 048 0150.

Please note
 
The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.

The Financial Conduct Authority does not regulate cashflow planning.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
 
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

TWP 496