You can’t watch a football match, you’d have no chance of watching Wolf of Wall Street and many take longer on their daily commute.
So is 1 hour really enough for you to plan your retirement?
Bets Are Off
Legal and General carried out a survey on retirees, assessing how they came to their retirement decisions and how long it took them to make their arrangements.
14% of all of those who completed the survey wished they had spent longer planning. With 16% spending a year or more, 43% spending a month or less, 33% spending a week or less and staggeringly, 12% spent less than an hour.
If 14% of all these later regretted not spending more time, perhaps those who spent less than an hour missed out.
The results worried Tim Gosden, Head of Strategy at Legal and General, because with many more living well past the day of retirement, we should probably think more about how we will live through these years happily, without worrying about cutting down on lifestyle, or struggling to make ends meet.
3 Step Thought Process
There are 3 simple steps to retirement planning, but putting them into action does sadly take a bit longer than an hour when done properly:
- Wants and needs – What do you want and need in retirement, is it realistic?
- Researching your options – What types of financial arrangements can you make?
- Shop around – Who can offer you the best deal in an open market, and what are the features and benefits of that deal?
The survey also showed that only 10% sought financial advice, when many more could benefit.
Annuity Rates on the Rise – Every Deal is a Good Deal?
Nicola Hartley, Independent Financial Adviser at Simpson Millar Financial Services responded to this question:
“Despite the rally in annuity rates last year, shopping around and receiving financial advice still remains an important factor in anyone’s retirement planning. Underlying rates increases will inevitably be passed on via the product providers and therefore the gap between the worst (lowest income) provider and best (highest income) provider will continue to exist.”
“This means the best way an individual can ensure they are receiving the highest income is to invest time in shopping around and not taking the annuity offered by their pension provider, which in most cases is not the best income option.”
The Open Market, Buyer Beware?
There are also concerns that people think they have been given financial advice, when they haven’t. This is because they are contacted by a broker, who they’ll have a chat with before being sold a product. This isn’t actually financial advice, this is what’s known as ‘guidance’.
The broker isn’t your adviser, with a duty of care to act in your best interests. He is essentially a salesman, which is why it is dangerous to perceive what they say as financial advice.
If you buy a product without seeking financial advice, legally this means that if the product turns out to be inappropriate, you don’t have any protection.
Simpson Millar Financial Services Ltd provides a free consultation, during this we will talk about your retirement plans and see whether we can improve them. It may be that the best retirement plans will take longer than a football match, but isn’t it worth it?