Making money lasts as long as you do!

I took a short break from work recently and flew to the sunshine of far away shores. I understand that you need a break every now and then and I managed to smuggle my smart phone into my hand luggage along with an iPad to make the rucksack a mobile office to keep in touch and up to date. All very sad really!

On the gantry to the plane a well known global bank plasters the Walls with thought provoking comments accompanied by related and usually visually dramatic pictures, smothered with their logo. One of these comments read ‘Two thirds of people who have lived over the age of 65 are alive today’. I had to stop (much to the annoyance of the fellow passengers behind me!) and go back again to read this staggering fact. Could this be really true? And if correct, what are the consequences of such longevity?

Making your money last as long as you do is a pre-requisite to overall survival, although we do have the state system to rely on if things don’t go according to plan. However, with the austerity cuts that have been agreed but, in some instances, not instigated yet, relying on the state may not provide you with the minimums you require.

There are also the conflicting demands on your money and assets. You may want to leave as much as is possible to your family on death to save inheritance tax (IHT), but then you might feel that your children have had enough and, to use an acronym, be SKI-ing (Spending the Kids Inheritance-ing). Each will make their own choice.

Questions that need to be asked might be will you have enough income in retirement? Will your retirement spending change when you get there? You might have always wanted to do ‘X’ or ‘Y’ and with some tax free cash in your pocket, your mortgage repaid (hopefully) and the state pension kicking in, now is the time to do it. Think carefully about this. Relating this to the gantry headline referred to earlier, this could just be the third phase of your life (childhood/education, work, retirement, etc). And how long will this last? 20 years? 30 years? Each another chapter of your financial life. Who knows, but planning for this lengthy phase early is vital to make sure that these golden years really are just that, golden.

Have a look at your finances and your financial planning strategy for both know and the future. Then seek independent financial advice (IFA) from a well qualified adviser who can help you plan for this future time. I am sure it will be worthwhile.

As suggested above, we are all different, and will have differing views, requirements, aspirations and needs. Therefore, this blog should not be seen as individual advice.

Churchouse Financial Planning Limited, a Surrey based Chartered Financial planners, can help you with your financial planning as an independent financial adviser.

We look forward to helping you soon.

Keith Churchouse, FPFS

ISO22222 Certified Financial Planner

Chartered Financial Planner

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.