In his latest column for Altrincham Today, Jason Moss, an Altrincham-based Independent Financial Adviser at Harvest Associates, discusses the importance of planning for the future.
In the 2023 Scottish Widows’ Retirement Report, I was surprised to read that 35% of people are not on track for even a minimum lifestyle in retirement. For an individual, this is classed as meeting expenditure of £12,800 p/a.
When discussing objectives, aims and aspirations with my clients, a recurring concern emerges – the uncertainty surrounding affordability and timeframe for these goals.
For example, a common scenario involves a client contemplating retirement, yet struggling to envision its affordability or how this could be determined.
To address this, we like to undertake some Cash Flow Analysis. Using specialist software, we input details of their financial circumstances, including assets, income, expenditure (now and in retirement), as well as significant one-off expenses (often the aspirational items).
We then project this across the client’s lifetime incorporating assumptions for investment growth, inflation and life expectancy. The outcome of which is illustrated in several charts helping one understand their affordability.
An invaluable tool, should you not be on track, this gives us the power to understand what additional savings need to be made.
Alternatively, it might strike a conversation on what level of expenditure in retirement could be affordable.
On the flip side, the outcome could provide you with positive options, the ability to retire early, freeing up valuable time in your life to pursue other objectives, spend time with loved ones and live your best life.
Often with investments, savings and pensions scattered all over the place, most client’s find the thought of getting their finances in order understandably overwhelming.
Having the knowledge of knowing whether or not you are on track to meet your future objectives, gives you the power to make decisions now and puts you back in control.
Get in touch if you want to understand what your future looks like.
Jason writes a regular piece for Altrincham Today. If there are any questions or topics you would like him to cover, he would love to hear from you. To contact Jason or for more information, email jmoss@harvestassociates.co.uk, call 07703 341 285 or visit harvestassociates.co.uk
Harvest Associates is authorised and regulated by the Financial Conduct Authority. FCA registered number is 629749. The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
