How much thought do you give to the future?
Most people don’t think about pensions, life assurance or how their future will look financially. I totally understand that. Although, I do see the benefit of savings (whether that be for 1, 5 or 30 years into the future) I had a hang up about pensions.
When I first started my career, I didn’t want to think about retirement. It seemed so far away! Then I started hearing stories about people who saved for retirement then died before they could spend their money. It seemed such a waste (and I hate wasting money!). Some argue that these people lived a very frugal life. Others say they enjoyed their life and merely looked forward to a future they didn’t get to see.
Retirement is very much at the forefront of my mind at the moment. Most of the generation up from me have retired now and I see how varied their finances are. Some are relying solely on the state pension and are having to be disciplined about how they spend their money, where others perhaps had a few thousand pounds tucked away in a savings account so will be ok for a year or two yet. Then there are a small selected few who had a private pension, and albeit far from wealthy they’ll be ok for a while longer. This reminds me to give thought to my financial future.
Equally, each week I visit a nursing home and see circa 60 men and women in the latter years of their lives. Some are actively moving about, others are simple sitting waiting patiently for the next family visit or meal, and a small handful are living in a world that doesn’t bare any resemblance to the one we see them living in. This reminds me to embrace the simple pleasures of life, be grateful for my mind and body whilst living for today.
Its close call between spending all my money now and saving for a future I may be lucky to enjoy. However, when I ask my heart and mind to agree the best way forward for me, I find myself doing what gives me pleasure today yet equally thinking about what I might want to do when I retire and the funds that I will need for that.
I encourage you to reflect about what you would like to have happen when you retire, then sit down with your partner and ask them. Consider what you would like to be doing together and how that will be funded. Consider the gap (if any) between your current finances and the finances you will need.
Furthermore, it might be worth knowing that if you are the Director of a limited company, pension payments are tax deductible. Thus not only will you help build a more financially stable future by paying into a pension now you will be reducing your corporation tax bill too!
NB: Pensions values can decrease as well as increase which is why it’s important to get advice on the best pension available to you. The less risky funds are likely the best for growth but they do require you to be in it for the long run. Get yourself a financial advisor or drop me an email and I can put you in touch with someone who can educate you to make better decisions.
Love Helen x
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