I am writing this blog in order to encourage my present and future clients to engage in a discussion around retirement and how to get more out of it and live a longer happier life. The most effective time to have this conversation is when a person is actively thinking about retirement and when they are going to take that huge step of stopping work; choosing to retire early is a big decision, and an important part of that is having a detailed plan on how they are going to stay happy and fulfilled when they no longer have the anchor of working and filling the huge void left by not working.
Life expectancy in 1880 was 46 and by 2060 it is expected to be 88 so most people are on average going to have about 28 years of life if they choose to retire in their “Go Go” years at or soon after 60.
Black Rock did a survey in 2024 of 1000 UK residents with Defined Contribution Pensions in order to determine how they were feeling and help them with their concerns and in order to provide advice. ( see www.blackrock.com/uk/literature/presentation/read-on-retirement-pdf-uk-retail.pdf).
Only 26% of those questioned thought they were on track to allow them to have a reasonable standard of living in retirement. 39% didn’t know and 35% said they were not on track. This must be a big worry for them.
Over three quarters of Pre Retirees do not have a plan to move their money out of their workplace pension to generate income in retirement.
Pre Retirees top 7 concerns were:
- Worries about relationship issues; there is an 85% increase in the divorce rate in retirement.
- Worries about caring for others in retirement.
- Worries about poor health.
- Worries about financial problems.
- Worries about the loss of status and identity when they stop work.
- Worries about spending more time with their partner in retirement.
- The prospect of grief that accompanies old age as friends and family start to die off.
Blackrock identify 3 secrets to longevity- crack these and you stand a better chance of living a long and happy life in retirement:
- Diet
- Exercise
- Friends and Community
Costa Rica has the highest male longevity, and this may be because every man has a sense of purpose and rises at 5.30 am and walks between 5 and 7miles every day with friends.
I believe that the way to a happy retirement is as follows:
- Put plans in place early to build your retirement pot so it provides you with a comfortable income that enables you to do what you want to do and to be generous to your family.
- Put plans in place to build a sense of purpose; my Grandma used to put flowers brought by relatives into vases at her local hospital. She did this once a week for a few hours, and enjoyed the appreciation she received from people in doing a simple thing. She also gave lifts to very old ladies to church, even in her eighties!
- Get a structure in place eg Mondays is the day I go swimming, Tuesdays is games time at the community centre, Wednesdays I meet my friend for a coffee, Thursdays is yoga, Fridays I meet my walking friends and we have lunch in a café, Saturday I see my children and grandchildren, Sunday I’m in the garden.
- Spend as much time with your loved ones as you want and is possible.
- Try new things that interest you eg pottery, writing, take a course, paint, start walking football, start walking, start gardening for yourself and maybe others. Apparently, picking up pots and walking about in the garden can seriously lengthen your life!
- Find activities which are fun, play games, stay youthful in attitude.
- Give back to your community in some way, whether its helping in church, litter-picking, visiting the (more) elderly, charity work etc. Giving back makes people feel fulfilled. Money can’t buy that.
Blackrock have given me a structure to work with so I can hopefully help my clients to have their best retirement.
If you would like to meet with a financial adviser to discuss your retirement planning, then do not hesitate- the first meeting is free. We are Lazenby’s Financial Services, based in Roundhay, Leeds LS8 2LQ, telephone 0113 322 0700. Our website is www.lazenbysfs.co.uk
