Twenty and thirtysomethings
Arguably, financial decisions made in early adulthood are more important than any other and the key one is undoubtedly to start saving. While retirement may seem a distant prospect, financial habits formed during these years will ultimately determine whether you enjoy a comfortable retirement or have to work later in life.
A relatively long time-horizon means this group can tolerate greater risk as there is more time to recover any potential losses. A majority of savings should therefore typically be allocated to equity investments which offer the greatest growth potential. Some savings, however, do need to be readily available for unexpected expenses or shorter-term projects such as a house deposit.
Forties and fifties
During these peak earning years, building up a pension and investment portfolio is paramount. Establishing a sound, tax-efficient plan is also key, while arranging regular financial reviews can ensure plans remain on track. As retirement looms, a more conservative approach may be appropriate, with funds switching from equities to more stable asset categories like bonds.
When I’m sixty-four
Changes to the State Pension age mean more people now continue to work and invest well into their sixties. At this stage, attention will increasingly shift to income-generating products and ensuring projected income levels are sufficient to live on. Focus will also inevitably move to wealth protection and issues relating to wealth transfer.
Whatever your age, we’ll help you make the right investment choices at the right time. For more information on saving for Retirement, call us now on 0808 1234 321 to arrange a free no obligation first meeting.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.