Taking a holistic approach
While the role of the financial adviser is to focus on the money, sometimes the planning phase can raise other issues a client has not previously considered.
In the pre-retirement financial planning phase, it is beneficial to take a holistic approach, so that along with diligently saving money, you also make time to consider what that money is for. As I’ve written previously, this can have a beneficial impact on your savings habits. It might also make you think about a phase in life that you haven’t previously considered. Consider that the financial plan is only the tip of the iceberg!
Phases of Life
Life Expectancy remains on the increase for men and women. A man, who is 50 now, can expect to live for another 38.7 years, while a woman who is 50 can expect to live for 40.7. If you consider that state pension age will be 68 for that cohort of people, then that is over 20 years of retirement. Along with a financial plan, it’s clear that this phase of life deserves serious consideration.
If we park the financial side, and assume that some sort of savings plan is a given (I hope!) then what else is there to consider? What will your life after your career look like?
Although a few years away from that particular milestone myself, working in pensions has given me plenty of anecdotal evidence, speaking with people on a daily basis who are retiring, those with a life plan seem the most emotionally prepared.
Social media and retirement
Do you have an active social network? Writing for an excellent retirement series in the Guardian back in 2017, Dr Jonathan Collie stated that “Entering retirement with only your immediate family and your work network is a frequent cause of retirement depression”, he warns that this “can be a downward spiral that is very difficult to reverse”. The Retirement Planning Council of Ireland state that “staying networked and well connected” in retirement is an important part of the pursuit of happiness in retirement.
Doing different things is another common theme that crops up in all of the good “how to” retirement guides, whether it’s starting a second career or doing voluntary work. According to a US study by the Centre for Disease Control and Prevention, people who don’t fully retire have better health. You don’t have to continue in your current career on a part time basis however; perhaps you can educate yourself and do something new? The benefits of learning in retirement are also surprisingly good for your health.
Identity and career
At the end of the day, many people’s identity is wrapped up in what they do for a living, and that can represent a loss for them when they no longer do that. While they may not be consciously aware that this is troubling for them, it can be a huge source of unhappiness in retirement. Ensuring that you give attention to this side of your life while also planning the financial stability of your retirement may just ensure that you have an enjoyable life after your career.
Here to help you navigate your way to financial security.
The Milestone Advisory team are qualified financial services consultants. We specialise in helping professionals in the construction sector and related industries. Our team will work with you to review your finances, explaining your options in clear English.
No jargon – just the facts.
For further information please contact Susan O’Mara via email or phone: (01) 406 8020. Milestone Advisory DAC t/a Milestone Advisory is regulated by the Central Bank of Ireland.