Pre-Retirement Stage: Ages 60-65.

Financial advisers can call upon a generic framework to inform the services they need to provide within financial planning. This framework categorises people and their needs based on age groups. For example, someone at the start of their career will need different financial planning services compared to someone nearing retirement.

That being said, financial planning services must cater to the individual rather than just their age. Each person will have unique needs and preferences based on their life experiences and life events, which may not conform to the experiences of most people their age. The framework acts as a starting point, but the services provided are always tailored to the client and their family.

Considerations within the pre-retirement stage

During the pre-retirement stage, individuals are nearing the end of their wealth accumulation stage and need to be fully prepared to fund their retirement. This usually means financial planning services focus on pensions, investments and even retirement income management. It can be a daunting period as people worry whether they will have enough money to provide the lifestyle they envisioned. Yet, it is not too late to take action and improve circumstances.

Financial planning services may be used to look for ways to increase projected wealth during retirement, whereas for others they might be used to safeguard wealth that has already been accumulated. For example, the risk tolerance on investments may be recalculated and adjusted to accommodate individual needs and objectives. It’s also a stage where individuals will focus on paying off any outstanding debts they may have, including their mortgage.

Health and pre-retirement

Unfortunately for some, this stage of life can include medical issues and health problems. Coping with a long-term and serious illness should be factored into any financial planning services, especially if those issues will require finances to live a more comfortable life. These events may require a complete reassessment of retirement priorities for individuals and their loved ones, which is just one reason why financial planning advice is an ongoing requirement which adapts alongside the individual.

For further information on financial planning for those in the pre-retirement stage, don’t hesitate to contact our friendly team, today.