Investing for early retirement
Leaving the stresses and strains of work behind is an attractive prospect, especially if it’s earlier than you’d originally planned. But it’s a decision full of potential pitfalls. That’s why good financial planning and a careful investment strategy for early retirement are essential. This is where we can help - book a free consultation below.
Frequently asked questions about investing for early retirement
Our short video series answers some of the most frequently asked questions about investing for early retirement:
- How to make an early retirement plan
- What to consider when planning for early retirement
- How do I know if I can retire early?
- Will my money run out if I retire early?
- Investing for early retirement
Investing for early retirement
Want to learn more before you speak to us?
Watch Matthew Phillips, our Director of Wealth Planning, to learn more about investing for early retirement.
How to make an early retirement plan
Although it sounds tempting, stopping work early increases the amount of time you’ll need to draw money from your retirement funds and decreases the amount of time you have to generate an earned income. Your investments will need to be structured carefully, so the sooner you can start planning your early retirement the better.
How much money you’ll need will depend on how you intend to spend all that free time, so it’s important to think about this and remember a lot will change over the years, as you could be retired for a long time. Planning for the different stages of your retirement, and for the unexpected, will be important.
Our independent Wealth Planners can help you consider:
1. What you can afford
Early retirement means relying solely on your savings and investments for longer. So, you need to think carefully about what you can afford and to paint a complete picture of your finances. Do you have any unsecured or mortgage debt that needs to be considered? Do you have a complete picture of all your available pensions and investments, including the state pension?
2. How long until you retire
How long you have until you take early retirement can make a big difference to the sorts of things you might invest in and the level of risk you are able to take. The longer you have, the more time you have for your investments to work hard for you.
3. Your retirement plans
In retirement, you are likely to find yourself with a lot more leisure time. How do you intend to spend that time and how much is it going to cost? Are you going to go on more holidays, join a golf club, buy a camper van? Spend some time thinking about what retirement might look like as it could affect your investment strategy.
4. How many years you may be retired
If you expect to live to 90 and you’re only 55, you’re going to be retired for as long as you were working. Your investment plans will need to take account of your different income needs throughout this time, from your younger, perhaps more active years to your later years, which may take on a slower pace. You may also want to factor in the costs of later-life care.
5. Your attitude to risk
The right level of investment risk to take is a difficult thing to pin down. You may not want to take any investment risk at all. However, by keeping your cash in the bank it’s highly likely that inflation will erode the value of your retirement savings over time. On the flip side, if you take too much risk, a significant economic shock could severely impact your ability to fund your early retirement. Finding the right approach to risk is a key element of any early retirement investment strategy.
6. How things might change
Over time it’s likely that your objectives and the way that you think about your life will change. Everything around you will change too - markets, the cost of living, health of the economy, your family circumstances - everything will have an impact on your money and how it works for you. You need to be able to adapt and change the way in which you invest over time so that your approach remains suitable and aligned to your goals.
Investing for early retirement – how we can help?
Even if you are in the lucky position of having considerable retirement savings, knowing exactly how to invest to ensure you can retire early can be daunting. Our personal Wealth Managers have the expertise and importantly, the independence to advise you on the best way forward.
Your dedicated personal Wealth Planner can:
- Review your current financial situation and help build a diversified investment portfolio suited to your individual needs
- Take you through a cash flow planning exercise and let you know if early retirement is realistic and achievable
- Stress-test their plans against various scenarios such as market falls and rising inflation, so you can feel confident in your future plans
- Determine the best investment strategy to help you retire early
- Review your plans on a regular basis and make adjustments as and when they are needed.
Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested. Past performance is not a reliable indicator of future performance.
The tax treatment of all investments depends upon individual circumstances and the levels and basis of taxation may change in the future. Investors should discuss their financial arrangements with their own tax adviser before investing.
The tax treatments set out in this communication are based on our current understanding of UK legislation. It is a broad summary and cannot cover every circumstance and it does not constitute advice.
The information provided is not to be treated as specific advice. It has no regard for the specific investment objectives, financial situation or needs of any specific person or entity.
Early retirement calculator – when could you retire?
Use our simple retirement calculator to work out how much you might need now to retire early. You can do this by working out how much money you have saved for retirement now across your various pension, investment and savings accounts, and projecting your total retirement savings into the future.
Calculate if you'll have enough money in retirement
Assumes an inflation rate of 9.2% p.a. and investment performance return of 5% p.a.
Your email submission has been successful
We hope that your report provides motivation to keep building confidence in your financial future. We know it can be a daunting task so if you have any questions, please call one of our wealth planning experts.
Our specialist wealth planning solutions
Keeping you informed
Watch our webinar: Thomas Becket in conversation with Tony Dwyer, sharing their views on transatlantic investment opportunitiesRead more
With our families’ future financial wellbeing always in the back of our minds, we’d all welcome legitimate ways to manage inheritance tax (IHT) liability. One way to do this is by investing in the Alternative Investment Market (AIM).Read more
Meet some of our wealth planning experts
If you would like to know more about how our independent Wealth Planners can help you invest during retirement, please get in touch. We will be delighted to provide more details of our services.
Book a free consultation with a Wealth Planner
What happens next?
1. Arranging an initial consultation
First you can expect to receive an email from our team within 48 hours to find a suitable time that works for you, to arrange a voice or video call for an initial consultation.
2. Your consultation
During this consultation, a member of the team will discuss your situation with you to understand your requirements and answer any questions you might have about Canaccord Genuity Wealth Management and the services that we provide.
3. Referral to a Wealth Planner or Investment Manager
If you decide to progress with us, you will be referred to one of our Wealth Planners or Investment Managers to discuss your situation and requirements in more detail. They will then design a bespoke proposal detailing a unique investment portfolio that matches your individual requirements and attitude to risk, to meet you and your family’s needs.
4. Working with you long-term
With our wealth planning and investment management professionals, your wealth is in expert hands. Our mission is simple - to help you build your wealth with confidence. We will always keep you informed about your investment portfolio and performance and will continue to work with you to build our relationship on your terms. We can meet with you face-to-face, by phone or by email, whichever is more convenient for you. You can also access your account online at any time through our app. Our wealth management professionals are always readily available to speak with you.
Investment involves risk and you may not get back what you invest. It’s not suitable for everyone.
Investment involves risk and is not suitable for everyone.