Retirement is a time for relaxation and enjoyment, where the world is your oyster and you can finally do exactly what you’ve always wanted to do, nothing. With retirement age being 68 in the UK however, that leaves a long amount of time left to live and with no steady income from a job coming in, you’ll need to be smart with your finances.
If you’re thinking about retirement then you’ll want to use this advice to prepare for the best retirement possible.
Perhaps the most fun part about retirement is thinking about all of the things you want to do. Want to see the Seven Wonders of the World, Renovate your home or maybe even learn how to play an instrument?
Whatever your plans, there will be some cost involved and so creating this plan will allow you to get an idea of how much you need to save for a happy retirement.
Your pension will be your most stable form of income when you retire so the more you pay into it throughout your life, the more money you’ll have to enjoy your retirement. You may have the option depending on your employers to increase how much pension you pay which we highly recommend doing for peace of mind down the line.
If you’re thinking of retiring early and taking your pension out then it will be taxed heavily therefore, leaving your pension alone until the national retirement age is the best plan of action.
For those over 55, you can use an equity release mortgage to release the funds invested into your property. This will allow you to boost your bank balance which allows you to reinvest your equity release into other areas like stocks or more properties.
Having money held up in your property throughout retirement may be limiting your plans. Release it and start enjoying the life you have always dreamed of.
Where to live
As soon as you retire, you’re no longer tied down to a specific area for the rest of your life. You can freely move abroad or to a different part of the UK but wherever you decide to live, you’ll need a plan for your big move.
Organise your current property and sell unwanted items that you have no interest in taking with you and think about selling your home to pay for your new one.
Don’t cut your retirement short by suffering from poor health. Ensure you are exercising, eating well and getting out into the world so you are the best version of yourself in retirement.