Do you have enough saved for retirement? | Amyr Rocha Lima | TEDxKingstonUponThames

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retirement

is a word it is a dream It is the epitome of living the good life but for many it is an enigma wrapped within a labyrinth of financial darkness we live in a world that perpetuates the idea of ​​more devices, more trips, more experiences, but rare time it does It tells us to think ahead, but what happens if we change our lens? What if we changed our approach to all of this from living intentionally for today to also planning intentionally for tomorrow today? I want to talk to you about that shift, the shift toward understanding management and reimagining your financial future first, a brief story about myself.

I

have

worked in the financial services sector for the last 20 years, spending the first half of my career at two of the world's largest asset managers and today I run my own financial planning firm where we help successful professionals across the UK. Coupled with lowering taxes, investing smarter, and retiring on your own terms, now with that context in mind. Let me assure you that I

have

seen many times the ramifications of inadequate

retirement

preparation. The impact is often underestimated - not necessarily disastrous, but invariably discouraging - for example, did you know that in the UK the average income of retired couples is around £2,200 a month?

I can almost hear your thoughts, average, but as mayor, I'm attending a Ted X talk. I'm not your average person. taken, but when we dig into the details, it becomes clear that a substantial number of people are not prepared for retirement, let's run some numbers according to a recent survey by the Life Savings and Pensions Association to live comfortably in retirement, a couple You would need an income of around £3,500 a month, assuming there are no ongoing housing costs such as a mortgage or rent, so while the average income for retired couples of £2,200 a month is not a pittance, is a far cry from the £3,500 a month figure you would need to live well. life, but numbers may be faceless, so let's hear some stories: you may have come across a neighbor, an elderly neighbor who still works part-time driven by necessity rather than choice, or perhaps you know someone who has had to downsize from his comfortable family home to a smaller one. more affordable space losing Cherished Memories in the process of bringing this closer to home, let me share with you a story about Sarah, one of the people I have the privilege of advising in my financial planning practice.

Recently, Sarah found herself facing a financially challenging situation due to her parents' lack of planning, when her father passed away, leaving Sarah's mother with minimal financial resources and only a small income from a couple of inherited pensions. This has required a drastic change in my client's lifestyle, forcing her to accommodate her mother in her home. and taking charge of your financial support These are not mere anecdotes, they are reminders from Stark that highlight the very real consequences of taking a backseat to your own financial planning now as someone who dedicates her professional life to helping successful teachers plan his retirement.

I have noticed that while people have

enough

money to sustain their daily lives, they often adopt a rather unconscious attitude towards money, so I invite you all to stand up for a moment and participate in an exercise with me and, If you can't get up for any reason, feel free to join by raising your hand and if you're watching at home, feel free to join. I'm going to ask you three questions ready, okay, so here's the first question. Without looking in your purse or wallet, do you know how much money you have right now? If you know, please stay standing, if not, take a seat.

In my experience, about a third of you would already be sitting and feeling fine. So here's the second question: Think about the last time you withdrew £100 from an ATM or made a transaction for that amount. Can you account for it if you can and know what you spent that money on? Stay standing, otherwise sit normally. about half of those left standing would already be seated by now, all good, so here's the third and final question. Can you detail your expenses from last month if you can? Maybe you have a spreadsheet at home and you could tell me exactly how. how much you spent last month stay standing otherwise sit now surprisingly most people can't explain what their lifestyle really costs so for those who are still standing congratulations you are more aware financially than most, let's give them a round of applause, what's surprising is that Even in the age of personal finance apps and personal finance gurus on social media, I found that these questions continue to baffle most people a and again.

This lack of financial awareness poses a serious challenge for us financial planners. Our challenge is not only to raise awareness. of what financial planning is and why it is important, but adapting our message to those who were mostly unaware about their money and this is especially true for those who seem to have it all under control in other aspects of their life, you will see that Your money has all these functions. To play today, the income you earn from your job or business is tailored to your current lifestyle choices. Service past debts and hopefully some of them go towards building your financial future, but there is an expiration date on our earnings, when the time comes, it is your assets that you own who need to carry the battery and bear the costs of your lifestyle, so how can we ensure that Baton Pass doesn't lead to a fall?

Imagine for a moment your ideal retirement. I invite you to close your eyes if you wish and enter into that. Dream: Can you feel the warmth of the sun touching your skin on a pristine beach or hear the crunch of gravel under your feet as you stroll along some trails or perhaps smell the aroma of freshly brewed coffee in the bustling cafes of quaint towns? European? Believe it or not, friends, but this could be the most fundamental part of your financial journey to a good life. Yes, you need to know your numbers, but knowing how much you need to ensure your dream retirement becomes a reality is completely intertwined with knowing where you stand financially.

Your dream retirement seems like what gets measured gets managed in the first place, so once you have a clear vision of what the good life means to you, how can you calculate the size of the investment fund needed to achieve it? Let me introduce you to a handy rule of thumb called the rule of 375, so take a moment, pull out your phone, open the calculator app, and while you're at it, the rule of 375 allows you to estimate the size of savings you would need today. . To maintain any monthly spending requirements you have over a 30-year retirement, which, by the way, somewhat matches the average life expectancy of a couple retiring at age 60, the rule of 375 is based on a well-known retirement planning guideline called the 4% rule, but it takes into account the fact that most of us think about our expenses monthly and also makes a rough allowance for taxes of 20%, since most of us think in our expenses net of taxes, so let's work together on a practical example.

You have worked on your vision of your ideal retirement and discovered that you need an income of £3,500 per month to achieve it. To calculate the size of the investment fund needed to maintain this level of spending, simply multiply this monthly spending requirement. times 375, so in this example you would type 3500 times 375 and when you press equals you will see a number that says 1, 32,500, so you would use the 375 rule if you were retiring today and planning to spend £3500 a month for the next one. In 30 years you would need to have savings of just over £1.3 million, now let that number sink in for a moment1 1.3 million is a big number, isn't it?

But that's why we're here today, the 375 service rule. as a reality check that underlines the importance of being aware of your financial journey and hopefully this reminds you of the importance of not only dreaming but also strategizing and preparing, think about it this way, every penny you save, every investment Whatever you do, it is a step towards your version. Of that number, every financial decision has the potential to get you closer to that sun-drenched beach or that aroma-filled European cafe, but without a clear financial plan and taking the proactive steps necessary to achieve it, the gap between where you are now and your version of That £1.3 million figure might seem insurmountable now, it is essential to stress that this, of course, is only a rough estimate.

The complexities of financial planning often require more granular analysis, so consider working with a certified financial planner to help you refine this figure further by incorporating elements such as the state pension and other sources of income you may be entitled to during retirement. retirement the effects of inflation the effects of longevity the effects of long-term financial market behaviors, etc., etc., but use this rule of thumb and take a moment to evaluate your current financial situation. Status: How much have you

saved

for retirement and at what rate are you adding to it? Does your current financial path align with your vision for retirement?

If not knowing the gap is the first step to closing it and remember, creating a financial plan shouldn't do it. It should not be a one-time exercise, a static financial plan is like an outdated map, so periodically review your plan, refine your goals and make sure you maintain this cycle because only by adapting can we hope to keep pace with our dreams and the ever-changing realities of life. life. so don't just dream of the good life actively plan it, the plan is in your hands Don't let it fade away take the necessary steps to shape your financial future with purpose and enthusiasm after all, tomorrow is not just a new day it is your good life waiting to fold, thank you