What Her Majesty the Queen can teach us about retirement
27th June
At the age of 96 The Queen will be the first British monarch to celebrate a Platinum Jubilee. After 70 years of service, she continues to work, although the number of public appearances she makes has reduced. Stephen Palmer of Cranwell Wealth Solutions explores how the Queen’s story is indicative of today’s older generations. For a growing number of people, retirement is no longer a cliff-edge event that takes place upon reaching State Pension Age.
Is retirement becoming a thing of the past?
Upon turning 60 back in 1986, the Queen did not withdraw from public life despite reaching retirement age. In fact, state visits continued right up until the COVID-19 pandemic over thirty years later. Like the Queen, it’s increasingly probable that those reaching pension age will continue working or taking on their own engagements for years or even decades to come.
Living for a decade or longer in retirement was still the exception rather than the norm when those now reaching State Pension age began their working lives. Now, however, those of working age know there’s a decent chance of living for two or even three decades past their State Pension age. Rather than the idea of being put out to pasture, for many retirement offers a new phase of life to be embraced. There are many more choices open to retirees these days.
There are several steps you can take to plan ahead and make retirement what you want it to be:
Work out what you want
Whether or not you give up work entirely in retirement, you may wish to review how you spend your time and what you want from life. “
Don’t underestimate your potential life span
In 2018, on average, people in their 50s and 60s underestimated their chances of survival to 75 by about 20 percentage points and to 85 by around five to ten percentage points.1 If you live longer than expected, this increases the chance of your pension pot running dry.
Talk about it
As you enter your later years, you might be thinking about setting up a power of attorney, so that if you do lose capacity, support will be there. While these conversations may prove difficult and emotional, it is important that family members understand your wishes.
Build your team
A financial adviser can ensure you don’t run out of money later in life. Taking longevity into account, they can map out your plans, review them as the years pass and make changes when necessary. At Cranwell Wealth Solutions we have specialist advisers who can help plan your retirement. Get in touch with us today to arrange a non-obligation appointment to discuss the best protection options for you or pop into our Heathfield branch.
01435 866 101
Sources:
1 Subjective Expectations of Survival and Economic Behaviour by Cormac O’Dea and David Sturrock, Institute for Fiscal Studies, April 2018
