We all want a stress-free retirement where we can enjoy our golden years. Life isn’t always easy and perfect, and very often, unforeseen financial challenges could crop up despite our best planning efforts.

Unfortunately, these often-overlooked obstacles could see us having to downsize our retirement lifestyle.

Rising cost of living – We all know how inflation shot up this year. Plan your retirement savings with inflation in mind. Increasing yearly contributions could prevent your savings from losing value and coming up short when you retire. When you are retired, remember to increase your annual drawdown to compensate for the cost of living; otherwise, after several years, you could have less spending power.

Financial Stress – The last thing we want at retirement is financial stress. Ensure you have a comprehensive review of your retirement plans to ensure you are financially comfortable and on track.

Expenses you can’t see – There will always be unforeseen expenses that crop up during retirement, like major car repairs or a new roof needed or major health costs etc. Will your drawdown income be sufficient for this? Ensure you have extra savings set aside for unforeseen expenses apart from your normal income. 

Fees – Always be aware of the fees you are being charged for your retirement investments. They could make a nasty dent in your annual percentage drawdown. There could be comparative funds and investment vehicles that charge less and save you annually.

Withdrawing too much – Don’t ever forget that your retirement could be longer than you imagined. Withdrawing too much at the beginning of retirement could see you running short later on and having to lower your lifestyle accordingly.

Your advisor can help you plan for all these unthought-of retirement expenses and build them into your retirement plans. [email protected]

Please note the above is for educational purposes only and does not constitute advice. You should always contact your deVere advisor for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken as a result of reading the above.