Live life with no regrets
We’ve all heard the saying “Live life with no regrets” and what a wonderful saying it is. Shame then that there is a shared regret for so many of us on reaching a certain age – when we discover that we haven’t saved quite the retirement nest egg we had hoped for.
An annual Investor Confidence survey by TD Direct Investing revealed that as many as one in three retiring British investors admit they regret not having saved more money. One in five regret not taking advantage of investment opportunities when they had the chance. The survey only serves to highlight the stark reality that the next generation is headed for the same level of regret – if not more – than today’s newly retired, with as many as four out of 10 admitting they are not currently making any financial provision for their retirement.
Sadly, this “head in the sand” attitude to long-term saving seems to be something the British do best. In striking contrast, US and Asian investors have shown themselves to be finely in tune with long-term equity investment for when they retire. A recent Gallup poll found that well over half of American respondents expect to rely on investment in stocks and shares to fund their autumnal years, which is a staggering three times more than equivalent number of Brits. Over in Japan, a similar survey discovered that as many as one third of already retired Japanese managed an equity portfolio to meet their long-term needs.
For those expats often earning an attractive tax-free salary, it would be wise to set aside time and revise your pension plan so you can be confident that you’re on track to accumulate the kind of pot you will need to fund your desired retirement lifestyle.
Firstly, you will need to work out exactly how much you will need to save between now and then. Deduct from this amount any anticipated state pension and any amount you have already saved up through a company or personal plan.
When you begin pension planning, it’s best to seek advice about the best offshore jurisdiction in which to base your portfolio. An adviser is able to help you make comparisons between all the various investment options available to you, including different holdings such as equities, bonds, property and so on.
It’s worth having your portfolio reviewed around 10 years before your retirement date to see how best to reduce any unwanted risk and ensure that the investment spread remains well diversified. Three years before D-Day, it’s important to go through valuations on all your savings.
Being thorough and having a well thought-through plan is the best way of avoiding those pangs of regret and ensures that you can sit back, sip your glass of wine and enjoy your retirement on a well-stuffed cushion.