It is never too early to plan for your retirement. One minute, you’re looking down the barrel of another 30-year period of your life, and then before you know it, you’ve worked your last shift, and a life of relaxation and leisure awaits you.
Whether you’re due to retire in the immediate future or you have some time to plan for what happens post-employment, these tips can help you improve your quality of life and ensure you can live as comfortably as possible.
Pay Down Debt
When you’re living on a pension (currently, the state pension is £203.85 per week) or have a nest egg you can live off, the last thing you want to do is pay towards debts accumulated in your working life. While keeping low debt levels is always a good idea, making an effort to pay off or pay down your debt before you retire means you won’t have to worry about making repayments in your senior years.
Lifetime Mortgage
If you own a property, once you reach 55, you could be eligible to consider a lifetime mortgage. If you have equity trapped in your home and you want to free up some cash to do different things your income doesn’t quite stretch to, such as once-in-a-lifetime trip, home renovations or adaptations, gifting money to loved ones or anything else, then you can look at if a lifetime mortgage is something that can work for you. This is a great opportunity during your later life to help yourself financially if you need to or simply enjoy the money your home holds while you can.
Assess Your Living Needs
Research by the Pensions and Lifetime Savings Association found that for a couple at retirement age, a sum of £54,5000 per year will give them a life with little to no money worries (this is £37,300 for a single person) based on today’s living costs. With this in mind, you need to assess today if you can afford to live on your income post-retirement; it is essential if you don’t have a private pension or savings you can live off. Assess your living requirements, consider how you can afford to live comfortably, how much you will need and what changes or cutbacks will likely occur to make this happen.
Talk To An Advisor
You can talk to a financial advisor if you want to give yourself the best opportunity to live financially sound in your later years. Or you can talk to charities such as Age UK who can advise you on how best to approach your retirement, what help or benefits are available if you need them and what you need to think about and arrange for when the time comes. The more you know about what life will be like post-retirement, the more effective plans you can put into place so you’re as prepared as possible. It doesn’t matter if you’re 24, 44 or 64 and ready to retire within the next few years; talk to someone who can help you understand the realities of retirement, options, and how best to get yourself ready.
Despite the ever-increasing retirement age in the UK, there will come a time when you need to consider your options and what will happen once you take a step back from being employed or even an employer and embrace life outside of the rate race.
