Retiring early doesn't have to be a dream

Retiring early doesn’t have to be a dream

What do you think of when you hear the word ‘retirement’? Is it relaxing on a sun-kissed beach, cruising around the world or buying a holiday home?

Whatever your goal for retirement is, you’ll never achieve it if you don’t plan.

When people talk about planning their retirement they may think that pensions are the only answer. But that’s not always the case!

Some people may benefit from a pension while others may need to think about other investments to fund their life from the day they retire.

Retiring isn’t the scary step it used to be as long as you have a financial plan. And you really can retire early if it’s planned correctly and you regularly review your finances.

Here we outline some of the considerations to make. But remember, these are just a guide! It’s better to have a face to face meeting with us to share your aspirations. Then we can prepare a plan that’s as individual as you!

What you need to know about retiring?

If you decide to leave your business or give up your work early, then retirement could last for up to 30 years!

stimating the length of your retirement is a little difficult in that you can’t really know how long you have to live. So bear that in mind: will your retirement finances last long enough? If you haven’t made a plan then you really won’t know!

One of your goals may be to make provisions for your family so they receive an income and/or inherit unused money from your pension pot when you die. How will you know that is achievable?

Changes to pension laws 5 years ago mean you can access your pot once you’re 55. But without a plan, how do you know it will last your retirement if you start taking funds from it early?

The first thing we do is to ask you to share your goals, then we can work out what you’ll need financially to achieve it and how to put an action plan in place to make it happen.

What income do you have for your retirement?

Secure income: This includes your state pension, but also any defined benefit pension income and income from any lifetime annuities.

Flexible income: This can be income from savings and investments, renting property you own, paid work or a drawdown scheme, which is where your pension remains invested but you can opt to draw a flexible income from it.

Other assets: There are non-pension assets which could affect what you do with your pension pot, such as your home (downsize), other property you can sell or personal possessions such as antiques.
If you have outstanding loans, a mortgage or credit card debts it makes sense to pay them off to reduce your monthly outgoings. They may also eat into the income you were hoping to receive.


One area you mustn’t neglect is taking taxes into account. 75% of your personal pension income is classed like any other income and is subject to tax (although not National Insurance!). For example, your first £12,500 is not taxed but between £12,501-£50,000 your income is taxed at 20%. The other 25% of your personal pension is entirely tax-free.

Again, this is something we take into account when planning your retirement finances, guiding you on what income to draw on and when in order to meet your spending needs.

As you’re no doubt aware, prices tend to rise over the years. If your retirement income hasn’t kept up with those increases you may struggle to meet your expenditure.

When we have come across individuals who plan using their own spreadsheets, inflation is generally the one thing they forget to factor in, and yet it can have the biggest impact on their savings over the medium to long term.

What to do next!

If you’re serious about achieving the retirement you dream of, then speaking to us might be your best option. Our guide is a very brief outline so you know some of the basics before we start planning.

When you use Co-Navigate, we aim to hold you accountable. That may sound worrying, but don’t panic: we won’t make you feel bad! Being held accountable and regularly reviewing your finances together is the best way to ensure your goals are achieved.

Why not contact us today and start a conversation?

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