Forced early retirement – how long will my money last now?
Gavin Smart, Independent Financial Adviser at Forrester Boyd Wealth Management looks at the potential impacts of falling into early retirement and how that can affect your pension pot.
The economic uncertainty in the UK has seen a number of shock announcements recently from the likes of Ford, planning to close its Bridgend plant in 2020 and Honda set to close their Swindon manufacturing facility. It is not just the automotive industry however that is being hit hard.
For any employee the thought of an uncertain future is worrying but what if you are made redundant or forced into early retirement, will your retirement plans be strong enough to support you or will you need to rethink your retirement strategy?
You plan to retire at a set age but if this is bought forward, where will the extra funds to support the increased number of years come from? This is where a financial adviser and cash flow modelling could really help.
Just like within a business, if you run out of cash too soon you are going to end up with a lack of funds to enjoy your retirement, or maybe even worse not be able to pay your bills.
So where will the money come from and how long will it last?
Cash flow modelling can help answer these queries, help you see through the fog, giving you a clearer picture of your retirement plans. It can also answer questions such as how long your pension will last, what kind of income you can expect to achieve from it and whether you need to start saving more to fund your retirement and help formulate more tax efficient plans for retirement.
As we have seen with the recent spate of industry woes, you can never predict what the future will hold and nothing is for certain. Therefore, we always advise that you review your pension plans on a regular basis to ensure you can continue to live the life you have planned for into your retirement years.
If you would like any further information on cash flow modelling for your retirement or would like to review your retirement plans, please call 0333 11 222 11 to speak to one of our advisers.
Forrester Boyd Wealth Management limited is authorised and regulated by the Financial Conduct Authority.
A pension is a long term investment, the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.