Are you dreaming of a stress-free retirement full of travel and relaxation? A happy retirement today looks very different from previous generations, thanks to longer life expectancies and changing lifestyles. Planning ahead is essential to ensure your financial security and peace of mind during your golden years.

Key Considerations for Retirement Planning:

1. Longevity

People are living longer. Men reaching 65 can expect to live until 85 on average, with a 25% chance of reaching 92. For women, life expectancy is even higher at 87, with a 25% chance of living to 94. This means your retirement savings will need to last longer.

2. Retirement Age

With an average retirement age of 65, you could be retired for 20, 30, or even 40 years. It’s crucial to ensure your finances can sustain you through this period.

3. Types of Retirement

• Cliff-edge retirement: Retire at a set age, but be prepared for the sudden change in lifestyle.
• Early retirement: Enjoy more free time, but ensure your savings will last the distance.
• Flexi-retirement: Gradually reduce work while maintaining income, perfect for those not ready to fully retire.

4. Retirement Stages

Your financial needs will change as you move through retirement:

• Active years: Higher income for travel and activities.
• Later years: Lower expenses as you spend more time at home and with family.

Planning for Financial Security

To ensure a comfortable retirement, it’s vital to understand your life goals and assess if your savings are enough. Cashflow modelling can help map your inflows and outflows, ensuring you retire when you want and enjoy the lifestyle you deserve.