Retirement planning

You could spend up to a third of your life in retirement, which could be very different to your parents’ or grandparents’ retirement, so it is unlikely that you will need a fixed income that increases by inflation until death.

With retirement becoming ever more flexible, you will probably need an adaptable income to accommodate how you enter retirement and beyond. It could start low as you reduce your working hours, increase as you decide to fully wind down and travel, then decrease as you become less adventurous before increasing again to cover nursing home costs.

Everyone needs to put aside some money for themselves and their future, because everyone needs to retain financial independence. Saving for retirement is best done early to allow compound interest to work its magic: a small amount put aside for a long time grows to a very large pot.

However, your retirement plan should be flexible enough to cope with the unexpected, which is why BMP Wealth managers ensure that your retirement pot is integrated into your overall balance sheet and is flexible enough to stop, reduce or increase contributions with minimal penalties.

Your life will change and so your retirement savings should be flexible enough to accommodate changes without crippling charges.