Cotswold Link (West Oxfordshire) May June 2023

NAVIGATING THE RETIREMENT INCOME MAZE

I am assuming you have already done the very first step, which is deciding what you actually want to do with your time. Here are the key points:

• Figure out your cost of living – basic expenses and the fun stuff.

• Assume you’re going to live to 100+

• Recognise that your income needs are likely to change over time.

• Don’t underestimate inflation.

• Don’t forget the State Pension. Make sure you save enough money, then save a bit more.

• Remember to enjoy life in the meantime!

Figure out your cost of living

That should give you a rough idea of how much your current lifestyle costs you. If you want to go further, then think about how your life may change in retirement – less commuting, more holidays, new pastimes? Adjust for any subsidies you get from work –for example, if you have a company car now, you will probably have to fund your own car in retirement.

Split the figure into two categories –essential spending and discretionary. Beyond the basic costs of running your home, food, the car etc, it’s up to you whether you consider eating out and holidays as essential or discretionary. What can’t you live without?

There are many ways to build up assets which can be used to generate retirement income, but having done all that, how can you be sure they will deliver what you require?

In this article, we cover some basic principles in planning for your future. These form the basis of our initial (and ongoing) planning with our clients.

Whatever ‘retirement’ means for you, whether it’s a case of stopping work altogether or going part time, it’s essential to consider how much you’ll need to live on. Estimating that is easier the closer you are to retirement. However, it is worth having a go at it as early as possible, because that at least gives you a rough target to aim for.

At the risk of stating the obvious, start by adding up all your yearly spending, not forgetting to include the annual costs like

Assume you are going to live to 100+ According to the Office for National Statistics (ons.gov.uk), someone who is 65 now is expected to live to age 85-87 on average. However, there will be many people who live well beyond that age.

Plan for that eventuality. The last thing you would want is to run out of money. Also, it’s possible that your cost of living may increase as you get older. Although you may do less, you might need to pay for care at some stage, and the grandchildren will always be grateful for your help if you end up having some money spare!

Working out how you will fund your chosen lifestyle when you will no longer be earning a living could be the most important financial planning you do.

Recognise your income needs are likely to change over time

Although we are all different, it’s likely that we will be most active early in our retirement, but perhaps less so later on, meaning we will probably spend more heavily in the first few years. Also, if you are retiring before your State Pension (or other guaranteed pensions) commence, then you’ll need to lean more heavily on your savings and investments in the early years, until those secure pensions take the strain.

Unfortunately, with longer lifespans, the likelihood of needing assistance with living as we age has increased. Your costs may increase again in later life should you need care.

Don’t underestimate inflation

Until 2022, the previous 40 or so years had seen a fairly consistent fall in inflation rates in the developed world. In the early 1980s central banks set out to tame the beast of inflation, which had run out of control in the 1970s. They succeeded, and we became used to inflation rates averaging just 1.7% over the 10 years to 2021 (CPI inflation, source ONS).

However, thanks to the spike in energy prices following Russia’s invasion of Ukraine, enormous amounts of government

Even if inflation averages as little as 3% a year over the long run, money would lose about 25% of its purchasing power over 10 years.

So, whatever your sources of income, you will probably need them to increase over time to maintain a certain standard of living.

Don’t forget the State Pension

Although the starting age for the State Pension has moved considerably in recent years, it is still payable for 18 to 20 years based on average life expectancies and is guaranteed for your lifetime. The 2023/24 full pension for new claimants is about £10,600 per year, increasing in line with prices, earnings or at least 2.5% per year under current rules (the so-called ‘triple lock’).

That, by itself, probably would not be enough to live on for most people. However, if a couple both have full pensions, then their combined income would be over £21,000 a year, which could go a long way to meeting their basic costs of living.

If you wanted to buy a guaranteed pension to pay £10,600 per year, with annual increases to match inflation, starting at age 66, it might cost you about £258,000, as of

Make sure you save enough money, then save a bit more

How much is enough? That is the key question we seek to help our clients answer, and then we help them get there, navigating the rules and the markets and adjusting as their situation and needs evolve over time. If I have learned anything, it is that it is better to overshoot your target than to fall short. You have many more options, and a lot less stress. That way, you can enjoy your money in retirement, rather than worrying about it.

If you would like to have a further chat, and start building a plan for your future, please do get in touch.

01608 695100

above thoughts are provided for information purposes only and are not intended to be financial advice or a personal recommendation to take any particular action. The figures given are estimates. If you are unsure about the suitability of a particular investment you should speak to an authorised financial adviser. The content is aimed at UK residents only.

information is based on our understanding of current law and practice, which may be subject to change in the future. Tax treatment may depend on your individual circumstances. Past performance in not an indication of future performance. Any investments you make can go down as well as up - you might not get back the full amount invested.

Revolutionary Technology: Robotic Hip & Knee Surgery

Mr Nadim Aslam, Consultant Orthopaedic Hip & Knee Robotic Surgeon is one of a few Orthopaedic Surgeons in the UK currently performing this technique.

By using the latest technology to plan the surgery using a CT-based 3D modelling of bone anatomy, the hip or knee can be replaced with less soft tissue damage, enabling a more predictable surgical experience with increased precision and accuracy.

‘‘Patients who have opted for robotic-arm assisted surgery have seen great results, faster recovery, a shorter hospital stay and rapid return to full function.’’

worcesterkneeandhipclinic

Worcestershire Knee and Hip Clinic Robotics

Practice addresses:

Spire South Bank Hospital: 139 Bath Road, Worcester, WR5 3YB

The Droitwich Spa Hospital: St Andrews Road, Droitwich, WR9 8DN

Contact:

www.wkhc.co.uk 01905 362003

Can Hip Arthritis Present as Knee Pain?

Hip arthritis can be a very painful condition that makes life difficult for many people. Normally, following symptoms of prolonged pain or tenderness in the hip joint, it is formally diagnosed after a clinical assessment by a GP and an X-ray.

However, sometimes the pain of hip arthritis can be misleading. This is because the distribution of pain can be more widespread. It can even be felt in the knee, and mistaken for other conditions.

Here, we will look at why patients often experience knee pain when they have hip arthritis, and the best ways to manage it.

WHY DOES HIP ARTHRITIS CAUSE KNEE PAIN?

The reason you may seek a diagnosis for hip arthritis is experiencing pain in and around the hip joint that lasts more than a few days. But, pain relating to hip arthritis can be felt in one or more parts of the body including in the groin, the front of the hip, lower back and even in the knee.

The main symptoms of hip arthritis include:

• Pain and tenderness in the hip joint

• Joint stiffness after sitting or lying down for a long period of time

• Difficulty in performing daily activities

• A feeling of bone rubbing against bone

When you have hip arthritis, inflammation of the tissues and nerves can occur. This causes pain initially in the hip, but can refer to the knee. This usually follows the distribution of the saphenous nerve, which branches from the femoral nerve. However, the obturator nerve which passes from the hip to the inside of the knee can also cause referred pain.

GET YOUR KNEE PAIN CHECKED

If you have knee pain without any symptoms of hip arthritis such as stiffness, then it is very unlikely that you have hip arthritis. But, you could have knee arthritis – another very painful condition that af fects the knee joint, caused by inflammation that develops over time due to cartilage damage. It can also lead to other problems including swelling and muscle weakness in the legs, when left untreated and can cause mobility issues, usually later in life.

When you have knee pain, it is best to get a confirmed diagnosis of the cause so that you can look at the best treat ment options. You can request X-Ray imaging from your GP, that should confirm a diagnosis of arthritis. Imaging can also help you understand the nature and extent of damage, and your doctor can check your joint movement and function.

TREATING YOUR KNEE OR HIP ARTHRITIS

When you have a diagnosis of arthritis, the next best step is to organise a consultation with your Consultant Orthopaedic Hip & Knee Robotic Surgeon, Mr Nadim Aslam. You can discuss treatment options, including lifestyle changes, medications, physiotherapy and whether joint replacement surgery would be the best option for you.

If you are experiencing knee pain, hip pain, or a combination of symptoms, contact Mr Aslam today at the Worcestershire Knee & Hip Clinic, at Spire South Bank Hospital, Worcester.

Contact Number : 01905 362003

Website : www.wkhc.co.uk

The Cotswold Sky Diary

Summer Solstice: Wednesday 21st June 15.58 hours BST

Mercury: Exceptionally difficult to observe in May, but will make an appearance from mid-June onwards.

Venus: Beautiful evening planet observable at dusk in the west. Notice its closeness to the Moon on 23rd May and 21st June respectively. Sadly loses some of its brilliance through the month of June.

Mars: Appears to follow Venus during the two months of early

summer and is fading rapidly in brightness.

Jupiter: Now a morning planet but will not be easily observed until June. Note its position during the early hours on 14th June when it appears in the east just above a crescent shaped Moon.

Saturn: Poorly positioned during the early morning rise during both months due to the relatively shorter dark evenings.

Stay Safe – John Harris

Exams - One Final Effort

Perhaps I am the odd one out, but at school, college and finally University I used to enjoy taking exams.

I would tell myself that there was no one to shout at me, no misbehaviour would be taking place, and perhaps irrationally, argue with myself that other students would feel under stress so using some unexplained psychology within me I refused to be stressed. Somehow it worked but I appreciate it may not work for everyone. So why not give it a go. Advice to students on how to prepare for exams is given by all educational institutions and can be found in astronomical proportions within the internet. The advice may differ slightly but in general

will cover similar ground, but no matter how good the advice may be you will need maintained selfdiscipline and motivation to follow it.

Have A Digital Detox Day – It will not be as tough as you think, try it for one day during the week. This will save you being distracted. Writing down notes as opposed to typing will help you focus and process relevant information. Remember you will have to use your own handwriting for the majority of exams that you sit thus the requirement to practice handwritten answers.

Try Not To Unduly Worry – It is natural to feel pressurised give yourself a smile and think positively. You will be amazed how a little smile guides your

mind towards a positive thought.

Eat Healthy Regular Meals – Include a balanced diet with fish, poultry, fruits, vegetables, fruits and a little treat with some dark chocolate. This will help you to maintain energy levels and mood whilst decreasing tiredness and irritability.

There are some great resources for exam preparation at www.thirdspacelearning.com. Remember these are ideas and you may be selective on your choices.

Remember it is never too late to start revising. Good Luck To All Taking Exams – John Harris