Here are some tips on how to financially prepare for retirement:

Figure out your retirement budget. When you are working, you have a good idea of when you will get paid and how much you will have to spend. Retirement is different, and you need to budget for the rest of your life.

Make a retirement plan that considers your income sources and expenses. You should consider all income sources, such as state pensions, pensions from your work, and private pensions. Once you know how much money you have to work with, you can determine if you need to adjust your retirement plans.

Extend your wealth window if necessary. Your wealth window is the number of paycheques you have remaining before retirement. For example, if you plan to retire in 15 years, your wealth window is 180 months. This means you only have 180 paycheques to save enough money for the rest of your life. You can extend your wealth window by working longer.

Consider the possibility of needing long-term care and factor it into your budget. Some people prefer to spend all of their money while they are young and healthy and rely on the government for care in the future. Other people set aside money to pay for care so that they have more control over the care they receive. For example, they could hire an in-home caregiver a few times per week. You need to decide what approach makes the most sense for your situation.

Be aware of financial scams. It is important to be aware of financial scams, especially as you approach retirement. High-earning professionals are frequent targets of these scams.

Make sure you are getting financial advice from a reputable source. Only get financial advice from regulated firms. Look for a certified financial planner or chartered financial planner. You can also find tips for identifying scams on the Financial Conduct Authority website.

Prepare for the unexpected. You can’t plan for everything, but you can prepare yourself financially. Make sure that you have a diversified investment portfolio that matches your risk tolerance. You should also make sure that you have a plan in place if the market takes a downturn. Other important steps you should take include: making sure your death benefit nominations are updated, ensuring your will is current, and having a power of attorney in place.

Retirement planning is a process that takes time and effort, but it is important to start early. By following these tips, you can help to ensure that you are financially prepared for a happy and secure retirement.