Is financial independence a better option than retirement?

Retirement used to mean the end of working life, but that’s definitely no longer the case. People are living longer, staying healthier and are keen to make the most of the time they have. That’s where financial independence comes in.

WHAT DOES FINANCIAL INDEPENDENCE MEAN?

Financial independence means having enough income from your assets or investments to cover your desired lifestyle. It removes reliance on a pension. It gives you the flexibility to keep working if you want to, or to pursue hobbies, travel, or even launch a second career. Essentially, it’s about choice, not just having enough to get by.

RETHINK RETIREMENT

The real goal of financial independence isn’t to stop working altogether. It’s to reach a point where working becomes optional. It’s about building a level of financial security where your investments and other income sources can comfortably support your lifestyle.

Having a diversified income from:

• rental properties

• shares

• business interests

• etc.

can help reduce your reliance on any single pot of money (like a pension).

The key to financial independence is having your money is work for you, not the other way around.

PLAN FOR FREEDOM

Achieving financial independence takes careful planning. You must:

• live within your means

• save and invest consistently, and

• be clear about the life you want in later years (and what that life will cost).

Whether you want to slow down or simply shift direction, financial independence gives you the power of choice.

The independent financial advisers at Blackmount Private Wealth can help build a financial plan around your goals. Making a plan will ensure you have a clear path to the income and flexibility you want. That will allow you to live life on your terms, for as long into your later years as you want.

The value of investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future investment performance and past performance may not necessarily be repeated. A pension is a long-term investment not normally accessible until 55 (57 from April 2028).