Planning for Retirement

Where does the Time Go? Planning for Retirement


Mummy says….’There’s a well-known saying, “Time flies when you’re having fun.” For far too many of us, we grasp the reality of this old saying when we wake up one morning, realise we’re getting older and have no retirement plans or savings. That is exactly where I am at! I realise that while I’ve been focusing on living day-by- day,I may be almost out of time for planning for retirement.

Planning for Retirement

But this doesn’t have to be the case. There are ways to plan and fund our retirement years even if we’re in our 40s  (like me) or 50s. Whether you’re thinking institutional funds are going to be your saving grace or you’re plotting and planning a way to catch up on your retirement savings, the first thing you need to understand is this: it is never too late to get started. Phew – that is a relief.

Government state pensions

If you’re relying on your state pension for the bulk of your retirement funding, the first thing you need to do is determine at what age you can start receiving that pension. This target age may be different from the age at which you can get a personal or workplace pension. In order to receive state pension payments, you must make National Insurance (NI) contributions. These contributions need to be made throughout your working life. The government doesn’t recommend you rely completely on your state pension, however.

With the exception of very low income workers, everyone else should be in a pension plan through their employers by 2018. But you can still start now planning and preparing for your retirement.

How much will my retirement cost?

Everyone wants to be comfortable in their retirement. How much we’ll actually need to maintain a comfortable living situation in retirement will vary, depending on how we each define “comfortable.” Most people will want their retirement lifestyle to mirror their every day lifestyle. For that to happen, you’ll need income comparable to what you’re making now. Consider your current bills and how many of them will continue into your retirement years. For example, you may not have your mortgage in another 20 years but you’ll still be paying for your energy consumption. Make a list of what your expected expenses will be.

Decide if you’ll be staying in your current home or downsizing to a smaller and more affordable living arrangement in the future. Once you have a basic figure in mind, you can set an income goal for which you can aim.

When should you retire?

While many hope to retire when their state pension begins, this is not a retirement point that is carved in stone. You can continue to work past that age. You also don’t have to take your state pension straight away; you can carry on with building your retirement nest egg while you continue working.

Delaying your retirement can allow you to maintain the quality of your lifestyle for a longer period of time and gives you the opportunity for a higher income when you do retire. If you defer the receipt of your state pension for several years, you may be able to receive the deferred amount as a lump sum payment. Another option may allow you to received that amount in addition to the regular payments your state pension provides.

I hope you found this as interesting as I have. As I am in my mid forties with no pension plan at all, this all seems a bit too real to me! I definitely need to do some research and think about planning for retirement in the New Year – what about you?


  1. Time does go so quickly and there is so much to do and think about all the time, especially with retirement and old age x
    Rachel recently posted…Eyeshadow Palette you need for Christmas!My Profile

  2. Retirement is a long way away for me but I hope I’ll be as well prepared as this suggests!

  3. Stuff like this really scares me! I know it’s things you have to think about and make decisions, but it terrifies me! TIME GOES BY TOO FAST! :/
    Sarah recently posted…Start Your Own Christmas TraditionsMy Profile

  4. I have nothing other than the state pension. I wish I’d done something earlier
    Lyndsey O’Halloran recently posted…Erin’s Christmas Eve BoxMy Profile

  5. The mere thought of retirement freaks me out. The only thing I have is my Employee’s Provident Fund

  6. Luckily my wife is VERY good with money and sorted a few plans out when we were in our very early 40’s. Couple that with a very good Financial Adviser and we should be fine when the mid-60’s arrive!!!

  7. Planning for retirement is so much harder now than it used to be

  8. So important to plan for this so hardship is avoided thanks for the info

  9. I made the mistake of checking my NI contributions and was horrified to discover I need to work for another 25 years!

  10. This is so important. I still have time but my parents are coming towards retirement and not long ago it was my grandparents. It’s an important topic and I need to do something about this for myself.

  11. I wish I’d started a private pension when I was 18. Feel like I’ve wasted years to save!

  12. I wish I had more money available to plan for retirement. I’m 34 years old..and right now finding it difficult to plan for my children’s education with just one small income – I can’t save money that I don’t have.

  13. I’m in my 30s and this is something I worry about a lot. I need to try and get a private pension sorted asap!!

  14. I have two pensions, one from Tesco and one from JPMorgan but I need to look into setting up one for now as being self-employed it is easy to forget
    Kara recently posted…All the fun of the fair at Folly FarmMy Profile

  15. Lots of useful information to mull over
    Maybe I’ll just keep working part time to afford the lifestyle I love

  16. My partner works and has a pension he pays into, I’m a stay at home mummy, but when our 4 month old daughter is in school like our two older children I will be going back to work and saving for retirement, I her used to worry about things like this but I’m 28 my partner is 40 and we have three beautiful children I want to help when they are grown up and we retire without worrying about our finances like we do now xxx

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