Surviving Retirement

It’s Not Just About Getting There

Retirement is such a fuddy-duddy word. We youngsters hate using it and normally we don’t want to think about it because it’s “for old people”.?

So let’s call it financial freedom. It’s what we all want anyway, right???

When you think about ret.. financial freedom, does it feel like a distant dream??Like something you’ll never achieve, or it’ll happen when it happens.

I get it. I felt the same at 25. Hell, even at 30. But here’s the thing—later won’t happen if you don’t start now. And unfortunately, we can’t afford to wait.?

Come with me on this 2-minute journey.

The Decades of Rising Costs

As you move through your 20s, 30s, and 40s, your expenses will increase. It’s a fact. If not just because you earn more and want to enjoy life to its fullest, but because you pick up larger expenses.?

You start by living on a shoestring budget in your 20s, then come your 30s and 40s, often with kids, a mortgage, and growing financial responsibilities; all equating to increased outgoings. If you’re lucky, your income should increase at the same rate!

By your 50s though, something magical happens. Your expenses should start declining while your income stays the same. Your kids bugger off, you’ve nearly paid off your mortgage. The expenses that were towering over you, start disappearing.?

At this stage, it’s easy to think: “I’ve made it! I’m free!” But there’s one major problem lurking on the horizon.

Your Income Disappears

Once you retire, your income disappears. You’ve spent decades working to earn a good wage and, all of a sudden, that paycheck is gone. Reality hits: you need to replace your income to survive.?

Looking at Figure 1, we can see that corporate and public pensions can help provide us with some income. But will yours be enough to keep you happy? And, do we really want to wait until the state pension age to be financially free or just comfortable?

Planning for the Big Picture

This is where financial planning comes in. It’s not just about saving a little extra here and there; it’s about creating a strategy that spans decades. If you start investing in your 20s—say from age 25 to 60—you have enough runway for your investments to work their magic, and you can accumulate enough wealth to cover your retirement needs.

But if you delay and only start at 35?

Well, that’s where things get tricky. Investing from 35 to 60 might not give you enough to retire comfortably. It’s the difference between having a solid foundation versus scrambling to make ends meet in your golden years.

And for Expats, It’s Even Worse!

If you’re an expat, the financial freedom game is even more complicated. Nine times out of ten, we don’t get corporate pensions, and we’re lucky if we get a full state pension—if we get one at all! Without that safety net, it’s up to us to finance our retirement in full.

If you haven’t started planning yet, you’ll be in a tough spot down the road because missing out on early investments could leave you financially exposed (and buggered).

Figuring Out Your Retirement Survival Plan

Ultimately, it’s up to you to figure out how to survive retirement. No one’s going to swoop in and do it for you. The sooner you start planning and investing, the more likely you are to enjoy those later years without financial stress.

Luckily, financial planning is the key to making that happen and it’s not as hard as you think.?

What do I do?

For me, I’ve had to be really honest with myself about what I can afford and where I want to be in the future. I regularly review my financial goals and adjust my investments, knowing that each decision I make now impacts how I’ll live later.

I don’t just want to survive retirement, I want to thoroughly enjoy it!?

Did you start in time?