Blog Article

Your retirement strategy

Your retirement strategy

Date: 16 May 2024 | By: cosgrove

How’s your retirement strategy? In order to secure financial stability and peace of mind when
you stop working, careful planning is crucial - whether you're nearing retirement, or you still have many years of your working life ahead.

Be proactive
Recent data5 has shown that on average people actively start planning for retirement around the age of
36. With well over a decade of work experience accrued by this age, it seems the ‘age of responsibility’ arrives for many people in their mid-30s, with increasing mindfulness of the importance of financial planning, including actively thinking about their retirement. Interestingly, at this age 63% of respondents felt confident in their financial decision-making abilities. Yet, anytime is a good time to think about your retirement strategy.

Timing is everything
While it’s never too late to develop a well-thought-out retirement strategy, being an early adopter is preferable, giving yourself longer to work towards your retirement objectives and amass a sizeable pot to draw upon.

Investment approach
Younger people can afford to adopt a more aggressive investment approach with their pension investment allocation, embracing riskier assets for potentially higher returns over time. The longer investment horizon allows time for recovery from any downturns. Whereas for those in or on the cusp of
retirement, a prudent approach involves creating an investment profile which reduces exposure to riskier assets, although not eliminating risk entirely. For everyone, investments should be aligned to your risk tolerance and personal financial goals, which may alter over time as your life progresses and your circumstances change.

Regular rebalancing
Normal market fluctuations and varying asset performances can cause your portfolio to deviate from its
original allocation over time. Without intervention, this drift could lead to unintended asset concentration and increased risk exposure, making regular portfolio rebalancing a vital component
of your retirement strategy.

5Standard Life, 2023

Past performance may not be repeated in future. Future returns cannot be guaranteed. For ISAs, investors do not pay any personal tax on income or gains but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA manager. Tax treatment varies according to individual circumstances and is subject to change.
The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.
The Financial Conduct Authority does not regulate Trusts, Inheritance Tax Planning, Cash in Deposits, Capital Gains or Tax Planning or Taxation Advice