We can all agree that good mental health is one of the most important things. Financial planning and mental health tie together very tightly. A study conducted by HSBC’s insurance business revealed that three quarters (75%) of UK adults who have sought financial advice are more likely to possess average or above average mental health. And of those who haven’t, 42% said their mental health slipped below average.
Talking about your finances is a stressful thing, never mind trying to organise them! A very common case we come across is when people are stressed because they’re working in a job they don’t like and feel like they can’t retire. That was exactly how one of our clients, Mrs C, felt before coming to PenLife.
Mrs C came to PenLife for retirement planning and believed she was financially unable to retire. Mrs C found her workload too much and too stressful. Our Chartered Financial Planner, Louis Maddison strategically and thoroughly addressed her issue. Mrs C believed her salary needed to be similar in retirement as it was during her working life, so she could continue to afford her current standard of living. However, during her life, she made significant pension contributions and had already paid off her mortgage. So in retirement she wouldn’t have either of those to worry about.
Louis worked out Mrs C’s current income and expenditure and analysed what she actually needs in retirement. We used cash flow planning to identify how her pensions and assets make up the puzzle in retirement. This is the process of looking at your current financial situation and planning for the future. Louis prioritised Mrs C’s goals and what really mattered to her. Louis took Mrs C’s goals and formed her financial plan around them. Louis listened to Mrs C, understood her questions, then developed and implemented a plan to ensure her goals were met.
Mrs C was able to retire whenever she wanted! From thinking that it was impossible to retire, to being in total control of when she can, a huge weight lifted from her shoulders. She now has the time to do the things she truly enjoys—more shows at the York Theatre Royal!
Dealing with retirement can feel like an uphill struggle. That’s why we’ve created this guide that outlines the options available when you retire. To request your free ‘How to Retire’ booklet, please follow the instructions on the cut out.