If you’re in a career that doesn’t get automated, and if you’re lucky dear readers, you’ll retire around the age of 80 (depending on how old you are right now).

It won’t be sixty-something as it is now, because people will be living longer in the coming years and companies and governments can barely afford to pay you for another twenty or so years – they sure as skittles can’t pay you for another thirty of forty.

I stopped paying into a pension almost as soon as I started.

It must have been something about that first statement after I’d taken a fair chunk out of my monthly salary for a year – telling me if I carried on doing what I was doing for another forty plus years, when I retired I would receive around £5,000 a year (if I remember correctly).

I remember thinking that would barely pay for a weekly shop by then.

So here’s a checklist of things to think about when you’re planning your retirement:

1. Have you got a pension through your job, and how good is it (unlikely to be defined benefit, but some public sector ones are still quite good)?

2. How much could come to you and your family through inheritances (remember to consider how many siblings/cousins you have)?

3. What regular income are you currently receiving through your investments?

That first one is the obvious one, but have you considered the second recently?

According to various reports I’ve read, a lot of people are relying on this second one to fund their retirement – which is risky in some ways, but also shouldn’t be discounted.

But…

Do you know how financially savvy your parents and grandparents are?

My nan lived in the same house pretty much from when she married my granddad until she passed when she was 88. No in home help, a staircase to navigate each day, and on her own for over ten years.

The inheritance my sister and cousins and I received about twelve years ago helped all of us to buy our first house.

Financially savvy.

However while I’ve been in Jersey I’ve seen a disproportionate amount of daytime tv adverts advertising equity release.

If you don’t know of the concept, it’s basically aimed at retirees who would like to get some tax-free cash out of what is probably their main asset, the family home.

Google is your friend if you want to learn the ins and outs of this, it’s worth educating yourself as there are numerous not so great stories online and it can be very expensive in some cases.

It’s worth finding out if your parents have done this or are considering doing so (or have outgoings over and above their income meaning they will do it at some point).

Also, hope they don’t blow it on the usual liabilities (holidays, cars, certain home renovations).

The third one is within your control, way more than a pension as option 1 will be dictated to you to some extent.

And it’s why I stopped paying into a pension, realising that if I build up other income streams while I’m still happy to be working, then I can access the fruits of that labour whenever I want.

And if I’m really smart, they will continue to pay me an income (and my family and maybe even kids, grandkids etc), indefinitely.

Something to think about.

New income stream ideas can be found in my monthly guides that go out to subscribers:

www.guerrillainvestors.com/subscribers

All the best,

Stephen Wallis

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