Retirement is often seen as the end of a chapter, the end of your working life and the start enjoying your free time. Retirement planning isn’t just about getting your funds organised, it’s about how you wish to spend your new-found freedom, exciting times.
When you retire, you may want to take the opportunity to change your lifestyle completely, move home, start a new business or travel the world. And like all big projects, the more time you can plan and think it through, potentially the better your future could be.
Managing your Money
Getting financial planning advice before accessing your personal pension pot can go a long way to reducing your financial worries in later life. With people’s life expectancy increasing, you will spend more time in retirement than ever before, plus you may have health and care costs to consider.
The changes in pension rules have given those about to retire far greater freedom when it comes to using their pension pot, but freedom brings with it greater individual responsibility.
It is agreed that spending in retirement tends to follow the same trend regardless of your financial situation. People often spend more retirement income in the early, more active years of their retirement, spending decreasing in the middle years and increasing again later in life with medical expenses more likely to be required.
Budgeting for your Lifestyle
It makes sense to begin drawing up a budget for your retirement that covers your possible income needs and plan for your future. There are several factors to consider. You may have income from employment; equally, you could choose to give up work altogether and tick off the items on your bucket list. You may decide to downsize from a family home to a smaller property now the family have flown the nest, that is cheaper to run and means you can look at equity release to bolster your retirement income.
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 will 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.
To take professional financial advice, help with your retirement planning and making the most of your pension funds, call 0808 164 2664 or start online today.
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