Three surprising retirement planning lessons from classic Christmas films

The festive season can be a busy time, filled with shopping, cooking, family visits, exchanging gifts and much more. As such, the quieter moments offer a precious opportunity to relax and recharge – and there’s nothing quite like putting your feet up to enjoy a classic Christmas film.

However, you might be surprised to learn that some of your favourite seasonal movies contain valuable financial planning lessons that could help you build the future you desire.

Read on to discover three surprising retirement planning lessons from classic Christmas films.

1. White Christmas – Diversifying your savings and investments could help you balance risk

This much-loved musical stars Bing Crosby, Danny Kaye, Rosemary Clooney and Vera-Ellen as singers and entertainers who all end up spending Christmas at a Vermont inn.

Crosby and Kaye soon discover that the owner of the inn is their former commander, General Waverly. He has invested his life savings into the business and is at risk of losing it all because the weather has turned and there is no snow. As a result, guests have stopped coming because the inn no longer offers the picture-perfect winter wonderland they want.

Retirement planning lesson

Relying on a single income stream in retirement could leave you vulnerable to financial difficulties. If that income source fails, decreases or doesn’t keep pace with inflation, you might be left struggling to cover your costs, just like General Waverly.

That’s why diversifying your savings and investments is a crucial element of retirement planning.

Spreading your wealth between pensions, savings, stock market investments, property and other assets could help you balance risk and weather any periods of uncertainty. This, in turn, could improve your long-term gains, helping you achieve your retirement goals.

2. Home Alone – Careful planning helps you stay in control even when things don’t go as expected

In this timeless comedy, eight-year-old Kevin McCallister (McCaulay Culkin) is accidentally left behind when his family goes on a Christmas holiday to Paris.

At first, Kevin loves having no one around to tell him what to do. However, things take a worrying turn when two hapless burglars target his home. Determined to fend off the intruders, Kevin creates an elaborate system of booby traps. He plans and prepares with care, drawing maps and setting up contingencies to ensure both he and his home stay safe.

Retirement planning lesson

When it comes to building the retirement wealth you need to achieve your goals, preparation is everything.

Kevin drew detailed plans for defending his home. Likewise, mapping out your future income needs and identifying any potential shortfalls or risks (such as inflation and market downturns) could ensure you’re prepared to cope with any unexpected financial shocks.

Moreover, taking steps such as building an emergency fund and putting adequate financial protection in place could provide a valuable safety net for you and your loved ones.

3. A Christmas Carol – It’s never too late to change your future

Charles Dickens’ A Christmas Carol tells the story of Ebenezer Scrooge’s transformation from a miserly and mean man to a kind and empathetic philanthropist.

The ghosts of Christmas show Scrooge how poorly he has treated others throughout his life. Yet, they also send a clear message that all is not lost by encouraging him to learn from his mistakes and behave better in the future.

Retirement planning lesson

Of course, the earlier you start saving and investing towards your retirement, the longer you’ll have to grow your wealth.

However, even if you’re not where you’d like to be with your retirement savings and planning, it’s never too late to start investing in your future.

Your financial planner can use sophisticated cashflow modelling software to give you an accurate picture of your current and future finances. This could help you set meaningful retirement goals and identify the steps you need to take to plug any financial shortfalls.

At Francis Clark Financial Planning, we can also stress test your retirement plan to see how well prepared you are for unexpected life events and financial shocks.

No matter what stage of life you’ve reached, your financial planner can offer the advice and support you need to create a retirement plan that makes the most of your wealth both now and in the future.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate cashflow planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.