Retirement considerations

When people arrive at the point in life when they want to start taking an income from their retirement funds which is known as “decumulation” there are many things that need to be considered.
1. Longevity, people are living longer will your income provision last?
2. Flexibility, does your current provision offer the required flexibility to match your lifestyle requirements?
3. Inflation, this can be the silent killer hitting the long term spending power of your income.
4. Volatility, will the turmoil in the markets impact on the returns expected from your income generating investments?

There are key areas to be taken into consideration when looking at the spending needs of your retirement provision.

1. Essential spending also known as your minimum income retirement (MIR), these are the basic things to maintain your base standared of living.
2. Discretionary spending, usually covered by cash holdings which protects against market volatility.
3. A diversified portfolio to reduce the impact of volatility and inflation.
4. Emergency & legacy spending on such considerations as car replacement, long term care planning & leaving a legacy for your beneficiaries.

For advice on retirement planning and cash flow modelling contact me on 01296 641868 or email steve@sbfinancial.co.uk

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