The word retirement conjures up different images for each of us. Retirement has traditionally meant ceasing paid work and drawing a pension provided by an employer or privately and starting to spend time doing the things that are important to you. Retirement is funded by a pension but as we know the reputation of the pension industry has been dented in the last few years with failing final salary schemes and falling fund values.

At Landmark we like to replace the word retirement with “financial independence” as we believe this changes the outlook of how you plan. The term financial independence does not have an implied age, it also suggests that you may continue to work, on a full or part time basis. The phrase is not directly related to pension. Financial independence is the point when you are able to decide what to do with your time.

To achieve financial independence you have to create a life time fund which will be able to support your lifestyle. This can be done in a number of ways, using different financial products, investment strategies and tax planning. Don’t get hung up about pensions. Your life time fund may include some pension but the main issue is that you have a fund. The fund is “ your number” the amount of money you need to achieve the lifestyle you desire (see www.landmarkpensions.co.uk/essential-info/your-number) determining the amount of that fund and creating a strategy to achieve it is what financial planning is all about.

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