Who better to get retirement tips from than retirees themselves? Here are the tips they gave us:
1. Keep An Eye On Your Investments Before You Retire
The money you’ll need five to ten years into your retirement is most at risk. To protect your funds, you should avoid overspending because when you’ve lost that money, it is much harder to recoup it. Try to find investments that offer a predictable income. However, bear in mind that a high level of predictability generally means a lower return.
2. Accept That Inflation Occurs
Inflation is a fact of life, and it will eat into the purchasing power of your retirement funds. When you are making your retirement preparations, you should plan for inflation.
3. Discuss Your Retirement With Your Partner
Just as you would do with a house purchase or any other significant event, you should discuss your retirement with your partner. Be open about what you want to spend and how much you can afford to spend during retirement. Doing so will mean you both can set your expectations accordingly.
4. Focus On Your Health
Healthcare is expensive, so staying focused on being physically fit and healthy is just as crucial as being in good shape financially. The costs of healthcare often get overlooked in retirement planning, despite the prominence the subject receives in the press.
5. Set Up a Budget and Stick To It
To establish a workable budget, you first need to understand how much you can spend. However, taking this first step is something that many people fail to do. If you are struggling to calculate the income you’ll have available in retirement, you can speak with an investment professional to get help. They can give you an insight into your retirement and show you the tools you need to plan and track your spending.
6. Find a Good Investment Professional
Just as you would visit a doctor to ensure you keep medically healthy, so too should you talk to an investment professional for your financial well-being. Of course, you will want to speak with a good one. The best way to find a good investment professional is through friends or family who previously used one.
7. Be Careful About Travel Expenses In Retirement
When you are younger and more mobile, travel is cheaper and more accessible. Back then, you may not have been too bothered about sleeping on an airport lounge floor overnight. Now, maybe a hotel room seems more appealing. Of course, travelling will be more costly as a result. Therefore, consider getting your expensive travelling experiences done before you retire. When you travel during your retirement, try to keep to the same spending limits you have at home.
8. Get Mortgage-Free
Your home is not merely a roof over your head; it accounts for a considerable proportion of most people’s monthly costs. Paying off your mortgage and becoming mortgage-free means that you can live without this cost.
9. Extend Your Working Life
A great way to ensure you have sufficient funds for your retirement is to extend your working life. This option may not initially seem like an appealing prospect. However, it can provide you with a significant boost to your retirement funds.
10. Understand That You’ll Likely Overspend
Even with as much planning as you can do, there is a high likelihood of you overspending. To help minimise this, ensure that you budget for unexpected expenses such as replacement appliances and home maintenance.
Taking a few simple measures means you can become much better prepared for when you retire. Hopefully, these retirement planning tips will put you in a better position for your post-work life.
When thinking about your pension or retirement, speak to a regulated financial adviser such as Portafina or, view the information at The Money Advice Service.