The Importance of Knowing Your Retirement Number

Whether it be exploring new countries, spending time supporting our families or ticking off bucket list activities, most of us have an idea as to what we want our retirement to look like.

And while we are all guilty of finding time to daydream about our future plans,  the vast majority of expats claim not to have the time work out how much they will need to accrue to achieve these dreams.

The concept of a "retirement number" is not just about having a figure in mind; it's about how will you reach that target, and what steps you can take to ensure a comfortable and worry-free retirement.

More than simply the amount of money you need to save to live comfortably during your retirement years, your retirement number takes into account your desired lifestyle, life expectancy, inflation, healthcare costs, and other financial obligations.

So, why is knowing your retirement number important?

Clarity and Direction

Having a retirement number provides clarity and a sense of direction. It helps you understand exactly how much savings are required and allows you to set realistic financial goals.  Being realistic is essential for effective retirement planning.  By breaking down your retirement number into smaller milestones, you can track your progress and make adjustments as needed.

Informed Decision Making

Knowing your retirement number enables you to make informed decisions about your investments, asset allocation, and risk tolerance. It guides you in choosing the right investment vehicles that align with your retirement goals.

Adjusting Your Retirement Number Over Time

Your retirement number shouldn’t be set in stone; it's a figure that will probably be adjusted over time. Life changes such as marriage, children, career advancements, and unexpected expenses can impact your financial situation and alter your retirement goals. As such, it's essential to regularly reassess your retirement number and make any necessary adjustments to ensure it remains relevant and achievable.

Addressing Common Retirement Planning Pitfalls

Identify common pitfalls and mistakes to avoid in retirement planning, such as underestimating expenses, failing to mitigate your tax liability or neglecting to account for inflation happens all too much.  In this guide, Skybound Wealth look at some of the most common retirement mistakes expats make in more detail

Peace of Mind

Perhaps the most significant benefit of knowing your retirement number is the peace of mind it brings. It reduces financial anxiety and provides a sense of security, knowing that you are on the right track to a comfortable retirement.

The Role of A Professional Financial Adviser

A qualified, experienced and knowledgeable financial adviser can play a crucial role in retirement planning by providing expertise,guidance, and personalised advice tailored to your unique financial situation and goals. If you are unsure on how to work out your retirement number, A financial adviser will help you not only determine your number, they will help you develop a comprehensive savings plan, and optimise your investment strategy to maximise returns and minimise risks.

They can also provide valuable insights on tax planning,estate planning, and other important aspects of retirement preparation. Of course,you can go it alone, and there are many resources on the internet to help you.However, by partnering with a financial adviser, you can gain confidence and peace of mind knowing that your retirement plan is in expert hands.

Don’t Delay – Act Today

Knowing your retirement number is not just a financial exercise; it's a crucial step towards achieving financial independence and peace of mind in your later years. Don’t leave it too late when you have larger expenses and commitments in the future; by working on your target now, you have more time to plan to ensure retirement is no longer a worry.

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About Simon Athwal

Simon Athwal is a qualified and experienced Financial Adviser with Skybound Wealth Management with 10 years+ experience of assisting international investors from the UK and the Middle East. Using his strategic relationships and knowledge of worldwide markets, Simon advises his clients on how to best grow their personal wealth, tax and trust planning and protect their money from inflation.