In this video, I explain how to think about bridging the gap between early retirement and the State pension kicking in. There are potential pitfalls to look out for and tax implications of course.
Now, here's the problem: the gap between when many people want to retire and when their State Pension kicks in is getting wider. You may have some other pensions paying out too during that time, but if you're 60 today and want to call it a day at work, you've got seven years to bridge. That's 84 months of living expenses, holidays and everything else – some or all of that coming out of your own savings, investments and pensions before the State gets involved.
And the mistakes people make during these years can be incredibly costly. That’s why I call this period the Danger Zone.
Danger number one: running dry.
Danger number two: sequencing risk.
Danger number three: tax inefficiency.
Meaningful Academy Retirement Planning
Now, if you're watching this and thinking “How ready am I actually for retirement?” – I've got a free tool that can help. It's called the Retirement Confidence Check, and it takes about five minutes to complete. You'll answer a series of questions about your current financial situation, your retirement goals, and your planning progress, and at the end you'll get a personalised score that shows you exactly where you stand and what areas need your attention.
It's completely free, there's no obligation, and it's a really useful way to see if you've got any gaps in your planning that need addressing.
Retirement Confidence Check
The post From Early Retirement to State Pension: A Safe Bridge Strategy appeared first on Meaningful Money – Making sense of Money with Pete Matthew | Financial FAQ.
* This article was originally published here
