How Realistic Is Your Retirement Plan?

Retirement is something that will affect all of us at some point. But just how prepared are you?

In this week’s blog, we’ll take a look at some retirement realities, including how much you’ll need, current trends and challenges, pension saving tips, and why building a realistic financial plan can be easier than you think.

How Much You’ll Need

Do you know how much you will actually need to retire comfortably? It’s the first and hardest question for most people to answer, especially as living costs continue to climb. And while there’s no magic number, recent data from the Pension and Lifetime Savings Association (PLSA), suggests that you might need a bit more saved up than previously thought. Rising food, energy and motoring costs have all pushed up the amount of money needed to fund a comfortable retirement.

Yet, the exact sum needed is entirely shaped by your own retirement goals and preferences. Everyone’s idea of a comfortable retirement varies greatly.

It’s not just about covering the essentials; it’s also about enjoying life’s luxuries. Whether it’s dining out or going on European holidays, retirement should reflect your unique desires and aspirations.

With retirement costs on the rise, experts recommend considering upping your pension contributions (especially if your employer will match these) as this could significantly enhance your retirement pot.

For instance, a modest increase in your contributions now could boost your eventual retirement savings by a whopping 25%. This is the kind of forward-thinking strategy you need to adopt to meet the financial demands of a fulfilling retirement.

At Joslin Rhodes, we’re dedicated to understanding what ‘comfortable’ means to you and crafting a personalised plan that aligns with your lifestyle goals.

Analysing Retirement Preparedness

When it comes to retirement preparedness, where do Britons stand?

It’s a mixed bag, really.

Recent research by SmartSave Bank reveals that 44% of Britons anticipate retiring at or before the current State Pension age of 66. Among them, just 54% have established a concrete financial plan for retirement. In contrast, only 28% of those intending to retire later have a solid plan in place.

From 2026, the retirement age is set to rise to 67, and discussions about extending it further to 71 are already stirring up concerns and considerations about the future of retirement.

This shift could have profound impacts, not just on when you retire but also on how well you can prepare financially. Interestingly, there’s a noticeable difference in the level of preparation between those who aim to retire early and those who expect to work later.

Early retirees often have clearer, more structured financial plans compared to those who retire later, which might suggest why they feel confident enough to step back from work sooner.

Diving deeper, the awareness levels of the specifics of their pension pots also vary significantly between these two groups.

Early retirees tend to be more clued up on the details of their pensions, which undoubtedly aids their planning. In contrast, those planning to retire later often exhibit a gap in their financial planning, especially among those over 55.

Are you curious about where you stand in your journey to retirement? Whether you’re aiming to hang up your hat sooner or later, understanding your current retirement preparedness is crucial. Why not take our Retirement Readiness Quiz?

This is designed to give you a clearer picture of your financial future and help you plan more effectively for your retirement years.

Alternatives and Supplements to Traditional Retirement

As traditional notions of retirement evolve, you may choose to keep the door to work open, whether through part time roles, freelancing or contract work. This trend isn’t just about financial necessity; it’s also about maintaining a sense of purpose, staying active and continuing to engage with a professional community.

The shift towards working beyond the typical retirement age reflects a deeper change in our approach to work and retirement. For many, the idea of completely stopping work one day and switching to a life of leisure the next isn’t particularly appealing or financially feasible. Instead, easing into retirement through reduced hours or freelance projects offers a smoother transition, keeping the mind sharp and the bank account buoyed.

Challenges in Retirement Planning

The road to retirement isn’t always as straightforward as we’d like it to be, and there are a few bumps along the way that can make planning quite the challenge.

For starters, the sheer complexity of financial information available can be overwhelming. Pensions, investments, savings plans—there’s a lot to digest and not everyone feels equipped to make sense of it all. This complexity often leads to a lack of clear financial planning because, frankly, where do you even begin?

Then there’s the matter of unawareness of resources. Many people simply don’t know where to find the right advice or tools to help them plan effectively. It’s one thing to know you need to plan, but another to have easy access to reliable resources that can guide you through the process.

On top of these practical challenges, there are also psychological and social factors at play. Let’s face it, thinking about ageing and the end of our working life can be unsettling.

Socially, there’s often pressure to keep working and maintain a certain lifestyle, which can make the idea of stepping back feel like a leap into the great unknown.

All these elements combine to make retirement planning a bigger task than it might initially appear. It’s not just about crunching numbers; it’s about overcoming mental barriers and navigating a maze of information.

That’s why it’s crucial to start the conversation early and seek guidance from professional pension and retirement planning advisers.

Benefits of Working With a Financial Planner like Joslin Rhodes

We can safely say that, after helping thousands of Teessiders retire happy, we know that retirement planning isn’t one size fits all. We also know that the very idea of retirement is changing and so are the expectations surrounding it.

Retirement today isn’t just about ending a career; it’s about beginning a new chapter with its own set of dreams and challenges.

So, it’s important that you work with a partner that understands the human side of retirement and can provide holistic support, that goes beyond mere numbers.

Unlike traditional Financial Advisers, who typically focus on products and transactions, at Joslin Rhodes we focus only on you – and what you can do with your money.

Through our unique PlanHappy approach, we really get to know you and find out your ‘what’ and ‘why’ before we get to the ‘how’.
We aim to equip you with the tools and strategies needed to not just retire comfortably, but to thrive in your retirement years, pursuing passions and enjoying everything that you’ve worked hard for.

So, if you’d like a helping hand to make sense of your pensions and your retirement plans, get in touch today.

Our friendly team of local Teesside-based experts can help you assess your current financial circumstances, identify what you want to do in retirement and, most importantly, build for you a personalised plan that makes it all a reality.

Joslin Rhodes Pension & Retirement Planning – Real Advice, For Real People