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You work hard and put aside plenty of your earnings into your pension and investments, so we’ve explored how you can plan your dream lifestyle, to begin at a time that suits you.

Estimates of how big a pension pot you need to fund your retirement range from around £200,000 to £300,000(1) for anything from a basic retirement to something a little more comfortable. If you have a successful career and enjoy the benefits that come from a generous income, you will be aiming even higher.

Combine this with an ambition to finish work sooner rather than later, and smart planning becomes even more important. We look at three key things to consider.

Three ways to plan an early retirement

Adapt a ‘retire now’ strategy – market volatility causes fluctuations in the value of your investments. Over longer periods of time, your funds would be expected to ride out these peaks and troughs so that, hopefully by the time you finish work, your pot will have grown adequately. Often, a portfolio’s risk profile will be reduced as retirement nears, so if you decide to retire early, you’ll also need to adapt your investment strategy for this new timeframe.

Calculate the true cost – understanding if you have enough to retire in the near future means comparing the costs of your planned lifestyle with the long-term buying power of any fixed income, accounting for inflation. You may have paid off your mortgage and waved goodbye to the children, but it’s likely that you’ll spend more on leisure and travel – for longer. Financial planning doesn’t end at retirement – it becomes more important than ever.

Plan a life in retirement – once you have a clear picture of how much your dream lifestyle will cost, you can start to transform your dreams into reality. Plotting out your retirement journey for the next 20-30 years in detail means you are more likely to spot any shortfalls early and have an opportunity to adjust your plans. You may also spot unexpected opportunities to top up your income by increasing investment returns or liquidating assets at the right time to maximise value.

We offer a Personal Financial Planning Service, where our advisers have the expertise and technology to project your financial future using different scenarios, to help us plan for when you retire and to maintain your income throughout your retirement.

The service is open to those with £100,000 sole annual income, and /or £100,000 in savings, investments and/or personal pensions. Remember with investing, the value of your investments can go down as well as up, and you may not get back what you originally invested.

Before any services or products are provided to you we will explain what advice we can give and what products and services this covers, and any advice or product charges that apply and agree these with you.

Find out more about the service

1. https://www.royallondon.com/media/press-releases/2019/january/the-best-things-in-life-arent-free-royal-london-calculates-key-life-goals-will-take-25-years-to-pay-for/