I am a Chartered Financial Planner based in the UK. If you would like to find out more about working with me please contact:

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Why is RETIREMENT PLANNING so HARD?! Financial Planning UK

I just want to look at and have a think about the common issues and difficulties that come up when it comes to retirement planning, saving for retirement or even just simply engaging with retirement planning in the first place. And really use some of the real life experiences that I come across and challenges that we all face when it comes to this area.

Three of the main issues I see, is not knowing how much is needed, not knowing when you’ll stop working or stop fulltime work and lastly how long we will live for. Some of this we can absolutely control and some of this is completely unknowable. So we have to make assumptions around these areas and life events.

I would really break this down into 3 priorities with the first being the most important, this is to plan, for example what is it you are wanting to achieve, once that is established we can look at the process to get there, and arguably it can be at this stage that you may well realise the plan is not achievable and needs to be adapted. A simple plan could be to save a certain amount per month with the aim of achieving total savings of £200,000, £300,000 or whatever that amount might be. But once we have our plan we need to know if it is realistic and identify the process of how to get there.

Lastly and genuinely the least important is really the product. By product we mean the provider, the investment the tax wrapper. Which I would argue is what a lot of people focus on and see as being the most important element. But really the product is the easy bit. For most people a SIPP and ISA will be perfectly suitable investment vehicles and they really wont need to add any more complexity to their situation in regards to tax or risk in the form of onshore or offshore bonds, VCTS and EIS… unless they have maxed out contributions elsewhere.

What I do see is that inaction can occur when someone becomes so bogged down with the focus on the end product, on costs and various investment structures they do nothing whereas really they should be focusing on the why, why are they saving, how much and to achieve what end, the focus should be on the plan. And for it to be realistic as possible, something unachievable is simply an exercise in frustration and stress.

Money Helper Website:

https://www.moneyhelper.org.uk/en

Vanguard Pension Calculator:

https://www.vanguardinvestor.co.uk/wh...

Vanguard Retirement Research:

https://www.vanguardinvestor.co.uk/ar...

🗒 Please note:

The information provided is based on the current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.

All references to taxation are based on my understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances.

This channel is for information and education purposes only. Any information or guidance given does not act as financial advice. Please consult a financial adviser if you are unsure in anyway.

Keep in mind that the value of your investments can go down as well as up, so you could get back less than you invest.

⭐ My aim is to provide education and guidance to help individuals understand pensions, investments and protection.

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