Retirement dreamland: Age 66-70 is sweet, but most freelancers have zero plans. Here’s how to get started
Many people want to retire between 66 and 70 and freelancers fall within that group. A new survey reveals this age range as the retirement sweet spot. But a shocking 16% of people have absolutely no idea when they’ll be hanging up their boots – and that includes people over 55.
The study, conducted by Opinium for Hargreaves Lansdown, surveyed 1,600 people. While one-third aim for that 66-70 golden zone, almost a quarter are eyeing 61-65, and a daring 19% are shooting for pre-60 retirement.
But here’s the worrying finding a significant chunk of folks are wandering through their working lives with zero retirement plan. Helen Morrissey, retirement expert at Hargreaves Lansdown, points out this could be due to a mix of reasons – loving their work, not having enough saved, or simply not thinking about it yet.
Morrissey says, “Many of us look forward to retirement as a time to leave the 9-5 grind behind and have more time for friends, family, travel and rest. However, people are often far fuzzier when it comes to actually knowing when retirement will happen – a whopping 16% of us have no idea.”
Another surprising finding in the study is the over 55s are more likely to be “in the dark” than those aged between 18 and 34 about their retirement prospects.
“This could be for a variety of reasons,” says Morrissey. “Some could love what they do and have no plans to stop, others may have not yet really engaged. Others may have realised that right now, they don’t have enough and are playing catch up so want to keep their options open.”
She adds, “It might also be young people having confidence in when they want it to happen – before complexities have time to come up – like affordability!”
Morrissey suggests having an idea of what you want from your retirement can give you an idea of how much it will cost.
So, what does a freelancer do about retirement planning?
Here are some simple steps to overcome any mental blocks or procrastination about retirement planning.
Visualise your ideal retirement: Beach bum? Globetrotter? Knowing your goals helps determine the cost.
Use online pension calculators: Plug in your details and see if you’re on track.
Hunt down lost pensions: That forgotten pensions from your spree of fixed-term contracts, built up through more than one umbrella company or an old permanent job you had before going freelance could be a goldmine and confidence builder. If you don’t know how to contact your employer or pension provider, the Pension Tracing Service can help you find contact details for workplace and personal pension schemes.
You can find pension contact details at GOV.UK or by calling 0800 731 0175.
Consider consolidating your pensions: Having everything in one place makes managing your retirement savings easier. But watch out for exit fees and lost benefits!
Don’t forget the state pension: It’s a cornerstone of retirement income for many, especially with the state pension age on the rise. But for most, this will not be enough to live on full stop given the cost of living in the UK.
Planning for retirement might seem daunting, but taking control now can pave the way for the future you desire. Don’t be part of the 16% who are clueless – take charge of your retirement destiny so you can retire when and how you want.
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