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Retirement is something to look forward to, not something to dread about. It’s the culmination of your life where you finally conclude your career and resort to making the most of your life by having fun and doing the things that you love. You can have a perfect retirement lifestyle where you can travel to places, spend quality time with your children, and live life to the fullest. All these are possible if you are financially prepared.

Unfortunately, many are scared of retirement because they aren’t financially equipped and don’t know how to get by when growing old. That said, you would want to avoid the retirement mistakes that a lot of people commit so that you can prepare for it the best way possible:

Mistake No. 1 - You have no enough savings

Research from Fidelity said that if you want to retire at age 68, you need to save at least 13 per cent of your annual income at age 25. When you reached 30 years old, your savings rate should increase to 15 per cent, and 18 per cent when you reached 35 years old. The older you get, the higher the monthly savings should be.

Unfortunately, a lot of individuals do not consider saving up as early as possible. Young people walk blindly into pensioner poverty without even having second thoughts about their retirement plight. Let us firmly remind you—start saving now!

Mistake No. 2 -  You rely solely on your state pen

People in the UK are fortunate enough to have a state pension. Retirees in the UK receives £164.35 a month or £8,546.20 a year. While it’s good to have something to receive from the government, relying on your pension alone won’t serve you enough upon your retirement. 

Even if your mortgage is fully paid off and you have low monthly expenses, your pension won’t suffice for your dream of living life to the fullest. If you really want to a fruitful retirement, you must start to act now and prepare your finances.

Mistake No. 3 - You think your home is enough of an investment

For many British, owning a home is a significant achievement, and there’s nothing wrong with that. However, when it comes to your retirement, it’s a huge mistake to rely solely on your property as your retirement investment.

What many don’t realise is that a property comes with several other expenses, such as maintenance, security features, and other fees when you decide to downsize. By that time you retire, you may have already paid off your mortgage, and your children may have already moved out of your house. You are probably left to fend for yourself with meagre monthly income.

There are other investments that you can take the plunge into as early as now, which will generate more income for you in the future. It’s best to speak with a financial advisor who can help you invest and manage your finances.

Conclusion

There’s nothing scarier than growing old poor and financially struggling soon after retirement. To avoid this future scenario, be sure to have enough savings as early as possible, and don’t rely on the government and a house alone. 

There are many ways to prepare yourself financially and make your retirement all worthwhile. As early as now, do what it takes to manage your wealth and finances so you can thank yourself in the future.

Are you prepared for your retirement already? If not, let us guide you! Here at Harry Robinson Wealth Management, we aim to help you manage your wealth and finances in Cardiff for a brighter future. Get in touch with us today to see how we can help!

*Will writing and Powers of Attorney involve the referral to a service that is separate and distinct to those offered by St. James's Place and along with Trusts are not regulated by the Financial Conduct Authority.