A goal without a plan is just a wish – this is among the sayings of author Antoine de Saint-Exupéry, famous for his book ‘Le Petit Prince’.
People may wish for a good retirement: golfing, walking the dog or enjoying languorous days by a pool in the Costa del Sol, sipping on sangria, but failing to plan just makes it wishful thinking.
While people may consider retirement in itself to be exciting, they also need to consider how they will fund that retirement.
People need to be excited about their investment choices, their pension package and how they can start saving now to meet those long-term goals.
For advisers, getting their individual or corporate clients to consider what long-term pension planning means is perhaps the first hurdle, as Neil Adams, pensions and investment expert from financial advisory firm Drewberry points out.
“You’re no longer just investing until your retirement date”, he says.
He has a point. The state pension age has been rising since 2010 when the former coalition government came into power, and will reach 66 by 2020.
This will rise further to 67 and then to 68 under existing legislation. However, in February this year, the Government Actuary announced a series of assumptions that suggested the state pension age will be 70 in the 2050s and 71 in the 2060s.
This means anyone aged 30 or below will not get their state pension until they are 70, while those aged 20 or younger will have to wait until they are 71.
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Simoney Kyriakou is content plus editor of FTAdviser