After retirement

Hooray – you have retired – surely there is no need for further financial planning?

Hopefully you have a long healthy and enjoyable retirement in front of you. Your basic life planning requirements of ensuring you can continue to maintain your life style while never running out of money is still totally relevant – and so is your need for financial planning.

This alters as you move along the years from retirement. To simplify things let’s look at the 2 main areas:

1. Up to 5 years after retirement
2. After 5 years of retirement

Up to 5 years after retirement

Hopefully you have already set up your cash flow management system using our free budget planner. It is important that you establish exactly what your expenditure is in the first 5 years of your retirement to ensure your financial planner has accurate information in order to help you tweak your financial plan if required.

Good investment advice is also important as you may be able to make tax savings on your investment portfolio or restructure the portfolio depending on your current attitudes and economic conditions.

Once you own personal needs are firmly established you may need to consider estate planning to protect your assets for your children or other beneficiaries from inheritance tax, divorce or bankruptcy.

5 years after retirement

You should have by now established a very clear idea of what you want to do in retirement and the income requirements you have. Your financial plan should be relatively stable as should your income stream and expenditure.

Estate planning and inheritance tax should now be looked at in detail if you have not already done so.

Although there is still a need to meet regularly with your financial planner, you may decide that once every 3 years is sufficient. This should result in a deduction of your annual fees. Hopefully your advisers will agree that the fees paid need to be justified by the value they bring to the table and if your circumstances are not changing dramatically there should not be a need for annual meetings. This of course also depends on how your investment portfolio is managed.

Any questions on financial planning after retirement?

Please call us on 01582 839280 or Email us.