Recently, I’ve been getting questions from people approaching retirement.
This phase of life can be a stressful transition financially. For many people, the prospect of not actively earning an income can feel uncomfortable after decades in the workforce.
Investing in retirement can feel like too little too late, but it’s always possible to teach an old dog new tricks.Credit: Simon Letch
It can be hard not to feel anxious. Can you really stop working, and live off your assets? Will your assets really stretch that far? What happens if you run out of money?
So, here are four considerations for those approaching retirement to keep in mind.
1. Yes, investing is still relevant and important for you. There are countless misconceptions people have about investing later in life.
Some people think it’s too risky, and they can’t afford to risk their nest egg. Others think it’s too late, and they’ve missed the boat, so what’s the point in trying? But it’s important to understand that there is no risk-free option.
It’s important to take time to reflect on what your retirement years might look like. This can sometimes be a confronting exercise.
Not investing your money has risks too. Your uninvested cash will deplete with inflation. This means your money is going backwards in value every single year. So, there’s a risk that you could well run out of money before the end of your life.
While you don’t want to put all your money into a high-risk investment, you do want to still have some exposure to growth assets (like shares or real estate) even later in life.
Never too late: Why it’s still important to invest in retirement
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19.03.2024
Recently, I’ve been getting questions from people approaching retirement.
This phase of life can be a stressful transition financially. For many people, the prospect of not actively earning an income can feel uncomfortable after decades in the workforce.
Investing in retirement can feel like too little too late, but it’s always possible to teach an old dog new tricks.Credit: Simon Letch
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