There a number of processes, some straightforward and some complex,  to consider well ahead of your ultimate retirement date.  Hopefully, the following key points will be of some help:

• Whatever your plans and strategies make sure these are reviewed at least annually up to your retirement age.

• Start thinking about when you are likely to retire either on a full time or part – time basis and how much income you will ”need”  and would ”like to have” from this date.

• Review and reinforce your plans to repay all debt, including mortgage repayments by your retirement date. Paying down debt in retirement is a huge financial burden and may increase the risk of the necessity to downsize your home rather than choosing to do so at a time that suits you.

• Ensure you are saving adequately and tax effectively for your retirement via pension plans, ISA plans or by other means.

• For your pension plans start thinking about whether you will need to take all of the tax free lump sum and the pension income in one go or whether this can be phased-in during your retirement.  This will help frame the risk and types of investment funds you should be invested in up to and beyond your retirement age.

• Consider the underlying risk of your investments. Does the level of risk match your current understanding and requirements and will any changes need to be made in the years leading up to your retirement date. Remember, if you plan to use an annuity to provide your retirement income, your pension funds will be automatically disinvested to purchase the annuity. Make a plan to avoid a sudden drop in your retirement funds and consider ‘de-risking’ your pension funds well before the date you need to purchase your annuity.

• Scope out any major expenses that you may need or wish to incur at or shortly before your retirement date e.g. new car, deposits for children’s homes etc. Make sure you have a plan to fund this expenditure.

• Consider the level of financial protection you need to provide for your spouse/partner and/or any dependents in the event of your death both before and after your retirement date.