Running out of money is one of the biggest concerns for any retiree, with good reason. Life expectancy is increasing with the advance of technology and medicine, with many individuals predicted to live into their late 80s as standard. There’s also the doom and gloom of economic uncertainty due to the current political climate. That’s why it’s vital to make those hard earned savings last over retirement.
Here are a few courses of action that may help your money go the distance in retirement…
Consider other sources of income
Guaranteed income can help to bolster your savings. Factoring some extra income to cover your necessities can help to keep your pension pot in place for lifestyle spending or saving.
It may be worth starting a small business. Many individuals don’t find the idea of returning to work in retirement appealing, however it doesn’t have to be strenuous. You might want to take on part-time consulting work, tutoring or even dog walking. There are plenty of skills that you can turn into a small business.
Renting out a room, property or asset you have would also yield income. Make sure to take stock of all of your assets and think about how you may be able to acquire income from them.
Speaking to a financial adviser might yield some beneficial results. An experienced professional can provide you with investment opportunities that could yield supplementary income during retirement. Depending on your appetite for risk and reward, an adviser will develop an investment portfolio that could be a potential source of extra income to boost your savings.
Consolidate your pensions
It can be surprisingly easy to lose track of a pension, particularly one from a job you had earlier during your career. You may want to make sure all of your pensions are consolidated into one pot, so that you avoid leaving your money in the wind.
The easiest way to find an old pension is to get in contact with the Pension Tracing Service either via their website, or on 0800 731 0193. The Money Advice Service also has a great step by step guide on how you can track down any lost pensions.
Minimise your expenses
To make your money last longer, you have to reduce your expenses, which will require you to take steps to reduce both your must-have expenses and lifestyle expenses.
‘Right-sizing,’ your house is a great way to cut back on fixed expenses, by finding a home that reflects your income it can help you to acquire the financial flexibility that you need in retirement.
Cutting back on any lifestyle expenses will also help your savings. Of course, retirement is all about spending your time how you see fit. However, it’s good to think about which of these lifestyle expenses you find the most valuable so that you can minimise expenses elsewhere. Sticking to a handful of hobbies rather than several is one way to reduce these expenses.
Make sure you’re not paying too much tax
While it is very unlikely that you’ll be in a position where you pay zero tax, your tax commitments are likely to change once you reach retirement. It’s important to ensure that you’re only paying the taxman exactly what you need to. You can find out more information here.
Have a financial plan
In the end, making sure your savings go the distance is all about having a plan in place. A financial plan will contain all of your ingoings and outgoings so that you can have a realistic view of how far your savings will take you in retirement. Planning brings peace of mind and taking the time to make sure a plan is in place can help you to focus on enjoying your well earned retirement.
For more information on how to develop a robust savings plan, feel free to get in contact.