Despite all the headlines and government initiatives, many of us still take a ‘tomorrow will do’ approach to retirement. The trouble is, we’re living longer than ever — so the real question becomes: will there be enough to fund the life you want?
Living longer, planning smarter
Life expectancy has risen sharply over the last century — to around 79 years for men and 83 for women. A longer retirement is something to look forward to, but it needs funding for longer too.
The challenge of later retirement
From our mid-70s onwards, costs can rise faster than pension income can keep up. A few things tend to drive that:
- Healthcare and assistance — a greater chance of needing nursing care or help at home.
- Unexpected expenses — a new roof, a sudden health cost, or helping out family.
- An active lifestyle — many retirees travel and stay busy well into later life.
- Inflation — the steady erosion of the value of money over time.
Planning ahead pays off
The retirement market has evolved to meet these later-life needs. Taking advice at each stage helps match the right products to your changing income needs — and brings two real benefits:
Peace of mind
Robust plans for later retirement let you relax and enjoy your earlier retirement years.
Adaptability
Knowing what may lie ahead makes it far easier to adjust as your circumstances change.
Secure your future today
Later retirement may feel distant, but planning now helps protect the lifestyle you want further down the line. A pension is a long-term investment, so fund size, interest rates and tax rules all play a part.
Important — the risks
The performance of your investments is subject to risk. Its performance may fluctuate based on movements in the market and economic conditions. Capital is at risk. Currency movements may also affect the value of investments. You may get back less than you originally invested.
Past performance is not a reliable indicator of future performance. Tax treatment is based on an individual’s unique circumstances and may be subject to change.