The age of retirement is a moving target. Governments across the world are making changes to allow for the shift in the demographics of the aging population.  We are all living longer, that means our retirement provision has to provide us with an income to support our retirement lifestyle choices and to fund the care and medical expenses we may encounter.

As we are all living longer, our understanding of ‘old’ is different to what we have seen in the past. Many retirees stay active and involved well into their retirement which is more likely to last up to 30 years: that’s about one third of the average lifetime!.

According to the results of a UBS survey lets consider what the goals of wealthy investors’ are, as they age;

  • 60% say they are eager to maintain their current lifestyle.

  • 70% say that having a comfortable retirement is one of their top priorities.

  • 57% say it’s very important to be covered for health issues and long-term care.

  • 52% want to make sure their spouse is looked after if something happens to them.

However for most investors, they do not know if they are on track for retirement; Only 2 out of 9 investors are prepared for what the future might hold.  Those who do plan are more likely to be able to retire comfortably and cover any care and medical expenses.

I like to think of building a retirement fund as climbing a mountain through our working lives. At the top of the mountain is the optimal retirement fund to facilitate the lifestyle choices in retirement. If you start your journey to the top of the mountain early in your career you can take the long trail to the top; the easy way up.   Leave it later in life, you still need to get to the top but you may not enjoy the luxury of the long trail to the top. You may need to make a shorter journey.  Planning your journey will address any shortfalls in your retirement provision and get you on the right track.  The question is, are you on track?