The five years before you stop work are when good planning makes the most difference. Here are the things we help clients sort out, in roughly the order we'd tackle them.
Work out what you'll actually spend
Most people underestimate this. Start with what you spend now, then think about what will change: no commute, perhaps more travel in the early years, and help for children or grandchildren. A realistic number makes every other decision easier.
Find all your pensions
It's common to have pensions from several employers, some of them long forgotten. Gathering them in one place, with up-to-date values, is the first practical step.
Check what state pension you're on track for
Your state pension will form part of your income, so it's worth getting a forecast early. If there are gaps in your record, there may still be time to fill them.
Decide how you'll take your income
There's usually a choice between a regular income, drawing money as you need it, or a mix of both. Each has different tax and risk implications, and the right answer depends on you.
Plan for the unexpected
Health, family and markets can all change your plans. Keeping some money easy to reach, and reviewing the plan every year, means you can adjust without panic.
