When it comes to setting money aside for when you give up work, at the very least you want to ensure that you’re going to have enough to pay for your living costs for the rest of your life. However, what you undoubtedly want to be aiming for is a nest egg which allows you to truly enjoy your life after work and do all the things you’ve planned for as you’ve saved. Some retirees find themselves in a position where they have to compromise on what they can do during their retirement simply because of a lack of funds. So here are our top tips for retirees to help avoid finding yourself in that position.
1. If you’ve budgeted throughout your working life, this shouldn’t change when you pack it all in, and if you’ve not managed to budget before then it’s never too late to start. Knowing precisely what you have coming in and going out each month means you’ll also know exactly how much money you can spend on enjoying yourself without worry or guilt about doing so.
2. Most retirees opt for low-risk investments as they depend on their pension and are not in a position to recover should the risk fail to pay off. However, taking calculated risks could help yield greater returns without opening yourself up to financial difficulty. Determining how much of your portfolio you’d be happy to put in higher-risk investments will be an individual decision, but is an option to consider as it can be a successful way to add to your pension at the same time as drawing down from it.
3. Once you retire, you’ll have far more time available to you, meaning you should find it easier to spend time doing things that will help your money go further. One way of doing this is through a part-time job; but if you’re not keen on going back to work once you’ve retired, take time to search for special offers and collect coupons which you might not have had the time to do when you were working. This will help your monthly income go further!
4. Whilst you’ll probably never be in a position to pay no tax at all, your tax liabilities are likely to change once you retire, so ensure you’re only paying the taxman exactly what you need to. Going back to the third point above, you’ll have lots of time to examine exactly what you should be paying in tax, so make enquiries and see what you can save.
If you’d like to contact us about this or any other matter, please feel free to give us a call today on 01789 263888 or email firstname.lastname@example.org.
The value of your investment 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 regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.