Retirement finance planner – One of the tools you need for a “Mid-Life MOT”
Minister for pensions and financial inclusion Guy Opperman is currently pressing hard for individuals from their late 40s onwards to be taking a “Mid-Life MOT” in order to make sure their future retirement plans are on course.
In his words, “Getting the correct information and guidance can make a huge difference to your quality of life in retirement. That is why we have taken on one of the recommendations from the John Cridland Review and are looking to pioneer the mid-life MOT.
“It can be difficult to plan ahead in the hectic rush of day-to-day life but as we are all living longer, healthier lives it is important to make sure you have thought about later life.
“This is where the mid-life MOT can help. It does not necessarily need to be at a defined point in our lives and could, for example, be in your mid 40s at a time when someone might value support and help to understand their finances and the options available to achieve the kind of retirement they would like.”
But what are the tools you need to undertake an MOT at any point in your later working life?
First and foremost, you need to know – as precisely as possible – just how much you need to have saved up in order to finance the retirement you are planning and when it might be possible to retire at your current rate of savings.
While financial advisors have sophisticated planning tools available which allow them to make those sorts of predictions, these are not available to the general public. But one simple-to-use planning tool is: the RetireEasy LifePlan.
Described by Investors Chronicle as a ‘holy grail’ solution for anyone looking to plan their retirement, it gives you an overview of all of your assets – including investments, pensions, savings, business assets and properties – and the income you will receive after liabilities such as debts, mortgages and income tax throughout very year for the rest of your life.
It shows you clearly whether you are going to drain down your assets on your predicted annual spending – or whether you could comfortably take out more and so make more of your retirement years.
It can show you when you could afford, for instance, to start reducing your work commitments later in life, while for those already in retirement, it can flag up whether you might even need to return to some level of paid employment.
Critically, it allows you to try out different scenarios to see how future events such as downsizing, an inheritance or gifting money to your grandchildren would affect the long-term outcomes.
The Premium version of LifePlan also provides live updates on stocks and fund values, provided by Morningstar, and you can model a Lifetime Mortgage into your plans.
The RetireEasy LifePlan is web-based and costs from just a few pounds a month – and you are not tied into any long-term contracts. If you want to see if your financial plans would pass an “MOT”, log on to www.retireeasy.co.uk.
Tony Watts | RetireEasy.