Over 50 and no retirement Savings

I remember 1989 like it was yesterday.My friends and I were just about to embark on the adventure of a lifetime.I’m talking about a lifetime ago when jobs were not scarce, when you could start a job on Friday, hate it by Saturday and walk into a completely new one on Monday

A time when qualifications were almost a swear word. Most jobs were learned from experience not from the classroom. A time when we followed rules and expectations regardless of our own opinions, the only opinion that mattered was your mother’s.

This was the time when most of us had our own money for the first time, and while mostly we had the ability to buy cars and homes of our own, one thing that seemed to be missing was the education of finance, learning how to handle money, being taught to plan for the future didn’t appear to be very high on anyone’s agenda.

It seemed that parents considered themselves the overseer’s of our future’s they didn’t seem to think that at some point we would be the adults. As for us, we were much too busy having fun, getting married, having families of our own or partying like it was the last day on earth.

Fast forward 30-40 years and suddenly reality shakes us like an earthquake. For most of us the only asset we have we call home. There didn’t seem to be time to prepare for our midlife. Some of us haven’t even made it this far, but what of us that are here? What of us who are now in the fabulous 50’s?

Is it too late for us to begin the snowball of savings to allow us to have some kind of retirement? What if at this stage we are still unable to pay into a retirement fund? Are we destined to work until we quite literally drop?

I guess in part it feels unfair, we did all the hard work, we raised our families, paid our own way and the only part of our lives we neglected was to take care of ourselves. Our parents over and over complained that life is short, but as always, we thought we knew better. Not once did we ever anticipate just how short that timeline was.

What is considered a comfortable retirement?

Research by Which the consumer body suggests £26000 per year for a couple or £19000 for a single person household. Almost 7000 retirees were surveyed and concluded that these were the annual incomes needed for a comfortable retirement. (Guardian, 2021)

A 50-year-old adult in this day in age is considered young. There is no doubt that as a society we are all living much longer than perhaps our parents did, all things considered there is potential that we could also work many more years longer than our parents had the opportunity to also, but do we want to? As always nothing is guaranteed. Life is still short no matter what age we live to in this life.

It is time now if we have not done so yet to prepare for some kind of slowdown if not full retirement. It is a stark reality that as we age, health, fitness and wellbeing will deteriorate, that is something we can guarantee in our own minds. It is not too late to begin saving toward this milestone.

We currently live is difficult times, the cost of living is skyrocketing and there seems to be no sign of it ceasing any time soon. However, saving a few pounds here and there could make a huge difference to our future.

As the 50+ generation we can assume we have completed our heavy life costs, mortgage payments are almost done, we probably have little to no debt, our children are grown and off doing their own thing.

How can we plan for retirement 50+

The first question that we need to answer is how do you see your retirement? What do you need? What do you plan to do in retirement?

Things to consider- this list is non exhaustive.

· Basic living costs

· Holidays/vacations

· Dining out

· Home Improvements

· A new car

· Gym membership

· Shopping Trips

· Entertainment

Make A Plan

Think about what you currently have of value. There are many different situations that could give you an income as you retire. You need to figure out what they are and how they can add value to your life so you can plan for your retirement. Some of the items below may help you or at least give you an idea of where to start.

· The state pension.

· Workplace pension

· Personal pension

· Property

· Selling a business

· Stocks and shares

· Bank accounts

· Savings

What If There Is A Gap?

How close are you to your retirement age ? Do you have enough savings or investments to achieve your goals? If the answer is no DON’T PANIC! There are some options that you might like to consider.

· Work for longer

· Add to any existing pension.

· Boost your state pension.

If like 21% of the UK over 50 population you have no savings by retirement what are your options?

One unexplored conversation is, do you want to retire? The thought of no 9-5 to be tied to may seem very idyllic but what do you fill with this time with.?

Retirement is not suitable for everyone.Very often retirees feel lost, bored, lonely, and unfulfilled.Perhaps continuing to work in a different role or capacity may be a better option

What are the benefits of not retiring?

• You can find a new purpose in life.

• You can find a new work-related identity.

• You can become a mentor for new professionals.

• Your week can retain its structure.

• You are less likely to feel lonely.

• Boredom will not be part of your lifestyle.

• You can choose how your time is used.

• You do not have the pressure of making sure your savings last.

There are no rules that say we must retire. The choice is an individual decision. Make the correct decision for you. Many people have become late bloomers and created their dream lives later in life. Perhaps that could be you.

Xx Lei

Late Entrepreneurs

1. Harland Sanders – “Colonel” Sanders, the founder of KFC became a millionaire at 74.

2. Charles Darwin – Became wealthy after he published “The Origin Of Species” at 50.

3. Grandma Moses – Had her art featured at the museum of modern art at the age of 78.

4. Laura Ingalls Wilder- Published her first book in the famous “Little Hose” series at 65.

5. Henry Ford- Introduced the first mass production moving assembly line for cars at 50.

INTERESTING FACTS

1) EMPLOYED AFTER 55 -Today 40% of the 55+ population are either employed or actively looking for work as opposed to 30% back in 1990.

2) Unemployment rates – Seniors 55+ have lower unemployment rates than any other age group.

3) Median Income – Those between 45 – 54 have the highest household income level of all age groups.

AT ANY GIVEN MOMENT, YOU HAVE THE POWER TO SAY : THIS IS NOT HOW THE STORY IS GOING TO END- Christine Mason Miller