Work out your
Knowing how much money you will have to enjoy is vital in retirement planning. You should do this at least two years before your planned retirement day, but the earlier you can do this, the easier planning for retirement can be.
- Check your state pension forecast – Many people think they will automatically get a full state pension. A state pension is calculated by the amount of National Insurance contributions you have made, and to get a full pension, you will need to have contributed 30 years. It’s a good idea to get a state pension forecast, and you can do this at the GOV.UK website.
- Add up your pensions, savings, and investments – As well as your pension, it’s worth checking all your savings and investments (including ISAs) and totalling up their current values.
- Get a property valuation – Your home is a valuable asset. Getting your home or other properties valued could provide an extra boost to your potential retirement-income through equity release.
There are several factors to consider. You may have income from part-time employment; equally, you could choose to give up work altogether and tick off the items on your bucket list.
- Downsizing the family home may be an option for income in retirement. Moving to a smaller home could release the equity you have in your property, and also could be cheaper to run.
- You may want to help children or grandchildren financially by paying for university fees or helping them with a deposit for a home of their own. You may also have to plan for a time when you might need to pay for help around the house, and for the likelihood of needing medical and nursing care in your later years.