Blog Layout
Use Downtime to Think About Retirement
KEITH ALLAN • May 07, 2020
Has the lockdown given you more time to think about your life after the pandemic? Maybe now is a good time to give some more thought to your retirement plans.
Our changed lives
The coronavirus pandemic has already changed many aspects of our lives and there continues to be a great deal of uncertainty about the future. People who are fortunate enough to be furloughed or working from home might be enjoying the new work-life balance by avoiding the daily commute and enjoying more family time and more flexible hours. However many others nearing retirement are facing real financial worries due to reduced income, the threat of job loss and instability in their investment accounts. Under ideal circumstances, there are three broad choices about how to transition away from your full-time job: phased retirement, full retirement, and continuing to work in retirement. Let’s consider how the pandemic has affected each of these options and which path could be the most fulfilling for you.
Phased retirement.
Working from home during the pandemic might be giving some workers a small taste of what phased retirement is like. Reducing the hours that you’re in the office can help you ease into a new routine where you’ll be spending most of your time at home. You’ll also have some flexibility with your schedule, which will allow you and your spouse to start experimenting with shared and separate calendars that will let both of you get things done without driving each other crazy.
Moreover, the pandemic has forced all of us to reassess the people, experiences, and goals that mean the most. Phasing into retirement can help you fine-tune your work-life balance as you continue to process how social distancing has affected you professionally and personally.
Full retirement.
Maybe having more time to think about your life is leading you to consider jumping into full retirement sooner. Perhaps being away from your job is making you realize you do want to adjust your work-life balance at the earliest opportunity and spend more time doing the things you enjoy. Or, if you’ve been putting off retirement, perhaps it’s time to review your options and create a new plan, one you can get on with when restrictions are eased.
The lockdown restrictions have created a separation between our sense of self and our jobs that some people find a little unnerving. That feeling is very common among new retirees, even those who are following a long-established plan and retiring wholly on their terms. If you’re leaning towards a full retirement right now, talk to your spouse about how you’d like to start living a freer and more fulfilling life after work.
Working in retirement.
Today’s retirees are healthier and more active. Some are working past 65 because they love what they do and long before the coronavirus pandemic many people approaching retirement age more were choosing to continue to work after retiring after retiring from their regular job. Some people transition to part-time jobs that let them explore other interests while still earning a modest income. Many working retirees also want to top off their retirement and savings accounts while they’re still able so that their nest eggs keep pace with increased life expectancy.
Could the coronavirus pandemic accelerate this trend? While social distancing, many seniors have gained greater proficiency with technologies like Zoom, Skype and Slack. Those skills could open up a whole new world of remote jobs, including teaching and consulting positions. Entrepreneurial seniors might be looking at the shifting landscape of global business and spotting a new route for starting their own dream companies. And still others might be so sick of being cooped up that, when conditions are safe, they’ll seek out part-time jobs as a way to reconnect with their communities.
How much is enough?
Research shows the majority of people have no idea how much money they really need for the rest of their life. They may have income, assets and investments but no idea what it all means or what sort of financial future awaits.
So if you feel like this , you're not alone! The big questions is: are you going to run out of money or die with TOO MUCH?!
For many the first big question about retirement is ‘can they afford to? They look at their pensions and other investment income and wonder if it is sufficient to support the lifestyle they seek in retirement. How much is enough? is a big question that we can help you with.
Act now …
If retirement is a transition you saw fast approaching at the beginning of the year, let’s talk about how the coronavirus has affected your thinking. Our Lifestyle Financial Planning service considers this and many other big questions surrounding retirement.
Send us a quick note and we will get in touch to talk it through enquiries@jwafinance.com
The minimum pension contribution may not be enough. Here are 3 reasons to increase your contributions
While economies continue to be weighed down by high inflation and concerns of recession, markets were boosted by optimism about AI in February. Find out what else affected the markets here.
Fighting fatigue often isn’t as simple as drinking cups of coffee or eating sugary snacks. Read on to find seven reliable ways to boost your energy levels and fight off your tiredness for good.
1.5 million homeowners are expected to face higher mortgage repayments when their fixed-rate deal comes to an end this year. Find out what steps you could take to potentially reduce your outgoings.
Research shows that 58% of people have never discussed inheritance with their family members. Are you and your beneficiaries missing out by not doing so?
Financial stress is leading to employees taking more sick days and harming productivity. If you’re a business owner, offering financial guidance and support to your staff could be beneficial for them and your firm.
Your Spring Budget update – the key news from the chancellor’s statement
All the winners and losers from the 2024 Spring Budget
Everything you need to know about annuities when creating a retirement income
Investment market update: December 2023
Research: How to slow the signs of ageing and feel healthier in your later years
© 2024. The content on this website is owned by us and our licensors. Do not copy any content (including images) without our consent.