There are lots of things to consider when preparing for retirement. One very important element is managing personal finance – a particular worry for many, as statistics from the Financial Conduct Authority show one in three UK retirees will have to rely solely on a state pension.
A good way to get personal finances ready for the move into retirement is to begin where the heart is… in the home. Organising household expenses or plans in advance can help you avoid any stresses or anxieties which could sour that big retirement party. Here are a few tips on how to prepare for life after work …
Be Bill Brave
One of the easiest places to start when it comes to financial health is your household bills. Staying on a standard variable tariff can cost a lot more per year than you’ll spend on a better tariff, so get researching! Not only your energy bills, but your mobile, broadband, TV, and landline can add up if you’re not on the right tariff for you. WonderBill can help you with this – keeping track of your bills, finding better deals and switching gives you a much better understanding of where your money’s going.
Supermarkets eat up a lot of our money (pun intended) so making a conscious effort to spend less on food can make a huge difference. Finding a cheaper supermarket, buying in bulk and getting your fruit and veg from a local market are great ways to get more for your money. Brand loyalty will cost you too, so look for generic or different branded products – they’re often just as good for a fraction of the price.
As you may have experienced, life doesn’t always go to plan. A leaky boiler here and a broken fridge there will eat away at your budget if you’re not careful. Make sure you’re keeping a rainy day fund in case of emergencies to limit the impact. A healthy savings account could save you from having to delay a trip or an event, so try and put away a modest amount every month. A suggested amount to have available at any time is around three months salary, so start counting those pennies as they soon add up.
Do you ever find yourself looking around your house and thinking: where did all this stuff come from? We tend to accumulate things quickly and part with them slowly, and this can leave us feeling heavy. Have a look around your house and see if there are devices, furniture, or anything else you might be able to sell on for a bit of extra cash. Not only will you come away with a profit, you’ll be creating more space for the next phase of your life.
It’s all about planning, planning, planning! Being caught out often costs us personally and financially so keep a diary. Any events like weddings, holidays or other big spends should be highlighted on your calendar so you know what to expect. Keep a personal diary as well as a family diary so that everyone’s on the same page – you can use free tools like Google calendar which will sync you with your family and keep everyone in the loop.
Now that you’ve got some ideas about how to make the big transition into retired life, you can get started! Considering finances during retirement can seem daunting but planning ahead is a great way to help you take advantage of what retirement has to offer.