Retirement means something different for every person.
For one person it might mean that long-awaited around the world cruise, for another it might mean buying a caravan and trekking around the country and for another, it could mean spending more time with the family.
One myth that we at Globe would like to dispel is that there is a certain amount of money you need before you can retire. There is no one amount or one calculation that a person needs to retire on because retirement means something different to every person.
When discussing ‘retirement’ with our clients, we first discuss the concept of ‘financial freedom’. This is the point at which you can afford to retire, not necessarily the time you choose to stop work. For some clients, the thought of having to stop work has never crossed their minds, for others – they have set their retirement date in their mind for many years.
When working through various retirement strategies, we ask our clients to map out their ideal retirement and then work through the myriad of financial issues which can include:
- Pensions and annuities;
- Lump-sum payouts;
- Buying/selling assets; and
- Generating retirement income.
Globe Financial Planning is passionate about working with clients seeking retirement as this is not only a financial decision but also a lifestyle and emotional decision. In addition to assessing whether a client can afford their ideal retirement, we also look at whether it is an appropriate time to retire. Does the client have something planned to remain active and healthy? It’s a critical yet often ignored component of making a healthy retirement decision.