While many of us dream of retiring early, it can sometimes seem out of reach. Even a normal age of retirement in our 60s may sometimes seem like a stretch when we review our finances.
So how much do you need to retire comfortably? According to the Pensions and Lifetime Savings Association’s Retirement Living Standards, an individual needs an annual income of at least £33,600 to live comfortably at the moment, or £49,700 for a couple.
However, with inflation continuing to rise rapidly, this figure is likely to grow year-on-year, which is why it has never been more important to prepare and update your Life Wealth Plan.
Don’t have a Life Wealth Plan?
Although many of us will have some thoughts or strategies about our retirement, a Life Wealth Plan goes beyond this – creating investments, wealth generation and saving opportunities that consider your financial health and prosperity throughout your life.
Developing a Life Wealth Plan could help you to create a clear, long-term wealth strategy that takes into consideration life insurance, tax-efficient borrowing, maximising an ISA portfolio, tax-free investments, and looking further ahead, estate planning and the preparation of a will.
Most young people don’t think about their retirement. With many struggling to even get on to the property ladder, the last thing they often consider is life after work, and yet putting a plan in place early on in life can pay dividends.
It is never too early to start thinking about retirement and planning for the day when you can leave work.
As the date of the state pension age keeps climbing and costs keep rising, people need to think seriously about what they want to be doing in their 60s and 70s so that they can take the actions they need to achieve their goals.
What’s involved in a Life Wealth Plan?
To build an effective Life Wealth Plan you must consider the various scenarios you might face in later life to create a diverse and active portfolio that ensures you are financially secure.
This could include:
- A clear wealth strategy
- Family review
- Business valuation, exit or succession strategy
- Protection and life cover
- Review of business and personal borrowing
- Pension planning
- Tax efficient income, growth and extraction of profits from the business
- ISA and Investment strategy
- Estate, will planning and inheritance tax mitigation
- Development of an action plan, including a business sale or succession plan.
When developing your Life Wealth Plan with us, we will prepare an action plan for the next 12 months and review your milestones over the next 10 to15 years to ensure your approach is working for you.
I already have a Life Wealth Plan, should I update it?
Those with existing Life Wealth Plans will have already experienced the benefits they provide and the financial security that they offer.
However, this isn’t a static plan and needs to be reviewed regularly to account for the many changing aspects of your life – from the welcoming of new grandchildren to rising household costs.
Now is a great time to sit down and review an existing Life Wealth Plan to make sure you are not only on track to meet your current goals, but also prepared for what the future may hold.
Here to help
We have helped hundreds of business owners and individuals prepare Life Wealth Plans, ensuring that every element of their financial life is covered, including investments and tax planning.
We can call on the support of our team of award-winning specialists at Lamont Pridmore Asset & Wealth Management, who can combine the other information we hold on your finances to draw together an effective Life Wealth Plan.
Feel like you are unprepared for later life? Developing a Life Wealth Plan could be the best next decision you will ever make, so please contact us on 0800 234 6978 or email [email protected]
