25 August 2014

Rethinking Retirement Planning 4 - No Gold Watches

It bears repeating that retirement is not what it was - the actual point of retirement that is. No more gold watch presentation for long service on Friday, followed by consignment to the deckchair on Monday.

A recent survey by LV= found that around two-thirds of those over State Pension Age still worked to some extent. At the very least, retirement is a gradual process, reducing the days per week. But it may also be part of a change to a "portfolio" time - a chance to engage in various occupations, some paid, some voluntary, some employed, some running your own business, perhaps.

The duration for which we do that is likely to extend, too. You can't expect to work for 30-40 years and then live off accrued savings for another 30 years. That doesn't work unless you save around half of your income for retirement.

So a key part of retirement planning is not only financial, but is also likely to be about preparing yourself for the portfolio mode - what are those other things you will be doing? What do you need to do now to prepare?

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