Children on a long journey are famous for repeatedly asking, ‘Are we nearly there yet? Well, the equivalent for adults could be said to be, ‘When can I retire?’ or ‘Can I retire early?’; both being variations, in effect, of, ‘Am I nearly there?!’

These are questions we hear frequently as we work with our clients on their financial planning. And yes, wouldn’t it be great to know?

It’s certainly not as clear cut as it used to be. In the past, nearly everyone expected to be presented with a gold carriage clock or equivalent at age 65 and that was it, retirement would begin! However, these days many people choose to keep working after their normal retirement date, as they are uncertain of what their income in retirement will be. In fact 1 in 10 of those over 65 are now being classed as ‘not fully retired.’

There are, in fact, standard questions and calculations which can help you come to a realistic answer. We often talk to clients about a concept known as ‘What are your numbers?’ These can refer to:

• the age that they would like to retire at,
• how much they’ll need to save to retire at this age,
• how much income this will get them in retirement,
• whether that figure matches with the amount required to do everything they want to in retirement.

You need to consider carefully what sort of lifestyle you want to live in retirement. People estimate that living reasonably comfortably in retirement requires around 60% of the income you had while you were working. When Scottish Widows asked 5,200 UK adults how much money they thought they would need, per year, to live a ‘comfortable retirement,’ the respondent’s answers averaged out at £24,500 per year.

So you need to make sure that with your personal savings and the state pension you are on course for an income that will be sufficient to cover that.

But often there is a large difference between the actual state of our finances and our aspirations. That’s where proper financial planning helps. Going back to the question kids ask on a journey, if you have a clear idea of how far you are from your destination, you can manage your expectations accordingly.

The answers to the questions above act as key milestones on your journey to the retirement you want for yourself. They also help you build in breaks, at ‘the services’ if you like, to take stock and make sure you’re on track.

It may be you opt for a halfway house; rather than fully retire, deciding to just work three or four days a week, or if you’re self- employed consider cherry-picking just the jobs you really want to do. Planning puts you in the driving seat, giving you the freedom to decide.

So next time, after a fraught work day, you wonder, ‘Am I nearly there yet?’, let us help you work out the answer.