TrenchPress

Top tips to consider when contemplating early retirement

As we are living longer and longer and people are working harder and harder in the youth, people are inevitably looking to retire early. There are some significant areas in terms of your finances that you may wish to look at when taking the option to retire early. One other area that it is important to ensure that you have covered is your Wills and Power Of Attorney. These documents are incredibly important and will ensure that your personal belongings and money will be dealt with accordingly should you loss capacity in anyway and upon on your death will be passed onto your loved ones. In order to ensure that you are making the most of your options you should speak with a wills and probate Cheltenham company such as https://beesandco.co.uk/our-services/wills-cheltenham/. They will be able to look at your assets and work out the best way to portion these out to your family upon your death.

Image Credit

People approaching the decision pointon retirement are no longer tied to looking at annuity purchases which, in the light of all-time lows in interest rates, are much less attractive. Investing your own income and living off the income is the alternative. Once you have your legal documents in order such as your wills and power of attorney you can then seek further financial advice on your retirement options.

Talk to an expert

To make the right decision a visit to an independent financial adviser (IFA) is essential. Although the temptation may be to cash in and spend part of a lump sum, looking ahead to how you will sustain your preferred lifestyle means professional advice is needed.


Diversification

Equities will often make up a large part of your pension pot, but the old adage of what goes up comes down should always be at the forefront of your mind. A range of shares will mean you are less susceptible to market variations.

Image Credit

Consider the risk

Advisers consider risk, such as concentrating investment in a narrow market.
The cost of managing your investment is also something to consider. Again, technology is driving these costs down and you will want to keep an eye on how much you are being charged for administration of your money.

Manage the losses

Investors often panic when markets adjust, which means you may make losses. The unpredictability of markets means that sometimes you must hold your nerve and not jump from market to market.

Is cash king?

Early retirement may mean for many people that this is the first time they have looked at a major investment other than their house. Cash in the bank may look attractive but interest rates contradict this. Keeping an eye on the stock exchanges will confirm that a diversified investment can out-perform deposit accounts to a startling degree.

Advice can be found at the UK government site and help to resolve any issues which may arise with your existing pension.

The new pension freedoms mean planning ahead is more important than ever.

Scroll To Top