Roy Hodgson bows out from Crystal Palace, the club he supported as a boy, at the age of 73, at the end of the season. He’s managed England, Liverpool and other top teams along the way. I’m pretty sure that money won’t be a problem for him for the rest of his life.
But Roy just hasn’t planned his retirement.
He started his pre-retirement interview well, admitting “It is not going to be easy to say goodbye to something I have been doing on a daily basis for 45 years”, showing that he understands that this will be a big life change.
But then it starts to unravel – Roy doesn’t seem to have planned things very well. He says he would “like to travel” (supporters of Crystal Palace and Liverpool tell me that they wish he had travelled to Barcelona, Madrid, and Munich more often during his time there!), but, beyond that, he doesn’t seem to have any plans. He’s hoping that “with the support of my wife and my son, I will find things I enjoy doing”.
That’s why we’re worried. Our experience of those who successfully retire is that they have planned what they will retire into. US retirement guru, Joe Kesler, advises that those, who retire with four or more core pursuits, are the happiest when they stop work. He recommends that you spend ten or more hours a year planning the (non-financial) aspects of your retirement.
Poor Roy doesn’t seem to have spent any time planning his retirement, and he doesn’t seem to have any core pursuits. Perhaps he should read our blog post about The key to a successful retirement?
Roy does seem to be leaving the door open for a return to work “I still have a future…in football or elsewhere”. We recommend this for those who are unsure about some financial aspects of retirement, and, in particular, the transition from building up your savings to spending them. This has become a bigger issue as retirees move from a reliance on the guaranteed income of final salary pensions to a reliance on investment-linked pensions and funds. But it does seem unlikely that money will be problem for Roy.
We wish Roy well. But we think he needs to spend some time working out what he plans to do. At 73, the average man has a 1 in 4 chance of living for another 19 years. And studies have shown that your chances of long life increase if you are affluent. That’s plenty of time to enjoy with his wife and son.
If you would like to plan your retirement better than Roy, please contact us.
Philip Wise | email@example.com
Managing Director and Chartered Financial Planner