Planning For Retirement If You Don't Have Kids
With Lena Patel
Planning for retirement requires careful consideration, especially for those without children. Financial independence becomes even more crucial when you don't have family members who might provide support in later years.
To tackle this huge – and often overwhelming – topic, financial planner Lena Patel will help you to plan around care home fees, inheritance tax, wills, power of attorney and more, so that you can have a happier, more fulfilled and healthier retirement without any last-minute rush.
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First, understand your "why"
Before diving into specific strategies, Patel emphasises the importance of understanding your personal motivation for retirement planning. For those without children, this "why" may differ significantly from those with children who might be planning with legacy considerations in mind.
It's important to understand why you're planning for retirement. Without children, your priorities might focus more on ensuring your own comfort, funding potential care needs, or supporting causes you care about rather than inheritance planning.
This clarity of purpose serves as a foundation for all other financial decisions and helps maintain motivation during the planning process.
Key retirement planning considerations
For those approaching retirement without children, Patel emphasises several important steps to optimise your plan.
Build a support network
Many clients hesitate to discuss finances with family members due to privacy concerns regarding their wealth.
A lot of my clients are senior, well-off individuals who come in and don't have anyone to talk to because they don't want their families to know how much money they've got, or they don't want their children's partners to know how much they've got.
She finds it "interesting to understand what it is that makes people not want to talk about their finances," while emphasising that "if you don't talk about your finances, you can't get clarity or confidence."
If you're probably feeling the same way, have a trusted group of friends that you can speak to, and also share your fears or concerns. Or for those uncomfortable discussing finances with friends or family, consider speaking to a professional.
Create a clear financial roadmap
Develop a specific vision for retirement that includes:
A defined timeline (e.g., five years until retirement)
Concrete financial goals (e.g., £30,000 annual income)
Inventory of current assets
Activities and lifestyle plans for retirement years
It's important that you have informed decisions that make you feel confident. Making sure that you have a clear plan in your head, so you understand 'I have five years until retirement, I want to achieve £30,000 pounds a year, this is what I've got, and this is what I'm working towards, because when I retire I want to do X, Y and Z.' Make sure that you have all these in place.
Take action early
While it's never too late to start planning, beginning early provides significant advantages:
Maximise pension benefits, especially through workplace auto-enrolment programmes
Assess short-term financial needs alongside long-term goals
Consider who will provide support during retirement years
Ensure you have a plan and take action now. And while it's never actually too late, it's a good idea to start early - in your 30s, for example. I think with auto-enrolment now, we've seen more and more people dropping out of pensions, but you can make a decision now and take some actions today.
Establish legal protections
Setting up Lasting Powers of Attorney is particularly important for those without children who might otherwise manage affairs during incapacity. "Who would you like to be supporting you?" Patel asks.
These legal arrangements can be set up through various channels:
Online self-service options
Citizens Advice Bureau
Financial planners and coaches
Legal professionals
Lasting Powers of Attorney can be set up by solicitors. You could do that online if you wanted to, or Citizens Advice Bureau can help. Financial planners and coaches can help you too.
