What Movie Will Your Retirement Be?

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Do you see yourself as the leading lady or man in your own movie, filled with exotic locations and intrigue? Will it be a comedy with laughter and good times or a drama with tears and misery?

Retirement can be a global hit if you have the winning formula or a major flop if you get it wrong. Planning ahead is one of the most important decisions you will make in life. But, if you can’t visualise what your golden years look like, then how will you plan effectively to reach them?

It is vital that you illustrate clearly the lifestyle you want to lead. Then you can focus on putting a proper retirement or pension plan in place to fund it. Your financial consultant will give advice on the best retirement solutions based on the lifestyle you want.




How Do You Plan For Retirement?

Firstly, you need to know what kind of retirement you want to have. Visualise the lifestyle you want. Do you want it to be the same as you currently have, or do you intend on downscaling and leading a simpler life? Perhaps you want to upgrade your retirement lifestyle.

Visualise how it will be:

  • Do you want to go on vacation every year or travel frequently? E.g. An annual vacation to a resort in the Algarve, a few shorter trips to local places, or perhaps to spend summers at your vacation home in Panama.

  • Do you want to retire in another country with a lower living cost or a slower lifestyle? Retiring in a country with a lower cost of living could make your retirement pot last longer or afford you a more luxurious lifestyle, e.g. retiring in Thailand.

  • At what age do you want to retire? This could affect how much you need to save.

  • Will you downsize your home and cars, or do you want to upgrade to that second vacation home? Downgrading will lower your monthly upkeep, but, upgrading drains the retirement pot.

  • Do you want to work part-time during retirement? You might not feel ready to stop working entirely and feel you still have lots to contribute, e.g. consulting a few days a week or opening a surf shop in the Caribbean.

  • Will you be earning extra money from rental income? This could cover the shortage in your retirement income.

  • What will your hobbies be, and how much will they cost to maintain? A country club membership or maintaining a microbrewery could be expensive.

  • How often will you eat out? Eating out daily in Thailand, for example, is dirt cheap, while trying out Michelin-star restaurants could drain your disposable income.

  • Will you need extra medical care? You might have pre-existing health issues that will affect your lifestyle.

  • Do you get free healthcare, or will you need private medical insurance?



What Will Your Sources of Income Be at Retirement?


The next step is to know where your income will come from or where you would like your income to come from. Do you have existing income sources, or do you want to generate more income sources? This is all part of your financial portfolio planning.


  • A state pension is retirement income from the government in exchange for national insurance or social security contributions made during your working life. There is usually a minimum qualification, e.g., having worked for at least 15 years. This is not large and should be considered supplemental to your retirement income.

  • Workplace pensions – This is a pension that your workplace invests in on your behalf. You may be fortunate enough that your employer matches your contributions. When you leave a company, your pension will be administered until you are of retirement age. Many of us will change jobs an average of 7 times in our life. Consolidating pensions into one pension fund that is actively managed could be beneficial. Your advisor will give you the best solutions for pension transfers.

  • Private pensions – These are pensions that are taken out privately by an individual. With workplace pensions becoming a thing of the past or the constant job changes, a private pension is the one constant for retirement throughout your working life. You can control contributions and how it is managed even if you are not currently employed.

  • Investments – Any investments you have apart from retirement savings.

  • Rental income – this is income from any rental properties you may have, whether it be vacation rental or permanent rentals. You can use this to supplement your retirement income.

  • Dividends from shares

  • Inheritance – You may be fortunate enough to receive a substantial inheritance. This could have a major impact on your retirement income and help upgrade your lifestyle.

  • Savings account – this is any savings that you have accumulated over time.

It is vital that you have a realistic vision of what your retirement lifestyle will be like and what kind of money you will have to spend.




Your financial advisor will give you tax-efficient options to help you get a plan of action in place to have the kind of retirement lifestyle that you want to lead.




Please note, the above is for educational purposes only and does not constitute advice. You should always contact your deVere advisor for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.

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