Ensuring your money lasts past a reasonable retirement age used to be much simpler than it is today. We live in a world where markets are challenging, savings are at an all-time low, companies are offering fewer benefits than in previous generations, and we are living longer than ever before.
So, what can you do to ensure you don’t outlive your assets and end up in financial distress? While you might not be able to control the movements of the markets or, in some cases, your designated retirement age, there are ways to manage your wealth to ensure it is protected today and into the future.
Things you can do to preserve your wealth long-term
Even if you work longer than planned, you will probably have to (and want to) retire at some stage. When this happens, you’ll want to be financially secure so that you can relax and enjoy your golden years, rather than stressing about money and all the challenges that come with advanced age (such as increased medical bills). Talk to your financial adviser about planning for at least two decades into retirement (or more depending on our individual circumstances) and investigate tax relief savings options.
2. Educate yourself about savings and investments
Living off your monthly income is not a secure route to financial stability. And, saving your money, while an essential part of any good financial plan isn’t enough to protect your wealth long term. You need to invest your money wisely to benefit from the power of diversification and compound interest, as well as build up passive income streams for when you are no longer active in the job market. Speak to your financial adviser about your investment options and start taking an active interest in your money and how best you can make it work for you. An annual review of your portfolio is a must in this regard.
3. Look after yourself first
It might feel unnatural but the truth is that you need to be selfish about protecting your money if you want to do what is best for yourself, and your family, in the long term. This is especially important when it comes to financing the needs of your adult children. For example, while they can secure a student loan for their studies, you will not be able to secure a retirement loan so let them go ahead and get a loan they can pay back rather than drawing the money from your retirement nest egg. If money’s tight, look at what your essentials are first. This will actually help everyone around you in the long run as you will not become a burden on them when you no longer have the funds to support yourself because you have been supporting other people who can work and earn their own income.
Need help planning for the future for you and your family? Talk to us. Our team of professional independent advisers offers a range of financial services, from insurance to investment management, and we can help you manage, grow, and protect your wealth well into retirement.