7 Tips For Retirement Planning
- 13 Dec 2019
When you are working, it is hard to imagine what life will be like at retirement. Retirement should be a special time in your life which allows you to enjoy the fruits of your labour and spend time doing whatever you want whether this is spending more time with family, travelling, trying new hobbies or simply kicking back and relaxing after many years of early starts and stressful work experiences. Everyone needs to plan for their retirement and the earlier you start this, the better (although it is never too late to start planning). Here are a few tips for planning for your retirement.
1. Discuss Plans With Family
First, it is a good idea to discuss your retirement with your spouse and/or family. This will help you determine what you will do with these years, which will help you to establish how much money you might need once you stop working.
2. Check State Pension
A state pension forecast will help you work out roughly how much you are on course to receive from your Government-provided pensions, and this will help you to get a rough idea of what your financial situation will be and if you need to take any other action.
3. Add To Pension Pot
If you are in a position to do so, adding to your pension pot is a smart move as this will be topped up by your employer, who essentially gives you free money once you reach retirement age.
4. Reduce Spending
Reducing spending is always a smart idea, but particularly if you have concerns about how you are going to manage financially. Going through your regular expenses, eliminating unnecessary spending and looking for cheaper alternatives is an excellent way to help you save for later years - even a small change could have a big impact in the long run.
5. Create A Budget
You might also find it helpful to create and stick to a household budget. This should include having a percentage of your income going into different expenses, such as rent/mortgage payments, food, socialising and savings.
6. Equity Release
If you need some extra money once you reach retirement age, and you have no plans of moving home, then equity release can be a smart move. Equity release frees up some of the value of your home in the form of a cash lump sum that can help to manage the costs of retirement and allows you to breathe a little easier.
7. Remote Working
Many people are now reaching retirement age and finding that taking on remote work opportunities is a smart move. There are many different jobs that you can do remotely which are highly flexible so that you can work as much or as little as you’d like. This can be a great way to continue earning and can also help you to stay busy in what can be a strange transition once you stop working.
It is important to plan for retirement so that you can spend these years comfortably and do what you want. These tips should help you build towards a happy and well-earned retirement which will allow you to lead a financially comfortable lifestyle.