Preparing for retirement can be challenging. It is often hard to know exactly how much you should save to live as comfortably as possible after retirement. There are many ways to ensure that you have enough money to live the lifestyle you want when you retire, but it will require a lot of planning and forethought to be effective.
Ideally, you will have a diverse investment portfolio to fall back on, along with plenty of savings and a generous pension allowance benefit. It can also help to take out different kinds of insurance and get financial advice on how best to save and prepare.
Decide How You Want To Live
The first step you need to take is to decide what kind of lifestyle you will want after you retire. Many people are happy to live quiet and contented lives surrounded by friends and family. In contrast, others may want to take advantage of their free time to explore the world, experiencing new things and be adventurous.
It can be helpful to decide which category – or a combination of the two – you fit into. If you want to travel or have new experiences, you will likely need more money than if you’re happy to enjoy a quieter retirement.
Make Adaptations While You’re Still Working
Our homes may need adapting as we age to accommodate changes in our mobility. It can be hard to afford such expenses once you’ve retired, as you will be on a set income for the rest of your life. Adapting your home when you’re still working will not only help you cover the costs more easily but can also help ensure your house is ready for any changes to your mobility early on.
Pay Down Debts
The lower your debt level, the more comfortable you will be when you retire. Having low or no debts can ensure that you can focus your retirement funds on making your golden years as enjoyable as possible. Ideally, you should aim to have any mortgages paid off by the time of your retirement and reduce your credit card utilisation to a manageable amount.
Consider A Part Time Job
If you have been unable to save as much as you would like for your retirement, it may help to consider a part-time job to help bolster your retirement income. You could ask your employer if you could stay in your role but with reduced hours or take up a low-stress part-time job. If you have specific high-value skills, such as programming, technical writing or web design, you could consider working as a freelancer during your retirement.
Find A Reliable Pensions And Insurance Provider
Choosing the right pensions and insurances providers can help you make the best use of your money when you retire. There are insurance options that you can take out before retirement that may help supplement your income. It is also a good idea to know how your pension provider will be investing your money and what kind of returns you can expect. For expert advice, you can look for more details here at Drewberry, your pension, investment and insurance experts.
Life A Healthy Lifestyle
Living a healthy lifestyle will ensure that your retired life is as full and enriched as possible. It can also help reduce the amount of money you have to spend on health and social care as you age. The better your health, the less likely you are to need ongoing medical treatment or in-home care.
You should keep as active as possible, doing at least 30 minutes of exercise per day. This could be in the form of walking, running or cycling, and exercises to build healthy muscles and joints like weight training or yoga.
Renegotiate Contracts And Utilities
Reducing the amount you spend on utilities and other services can help free up more of your money in retirement. It is a good idea to regularly review the amount you pay for things like gas, electricity, phone bills and TV services. Switching providers can get you a better deal and lower monthly payments on a whole range of services. Ensure you read the fine print to be sure that any change is worth it.
Start As Early As Possible
The earlier you start saving and investing for your retirement, the better. Ideally, you should start saving when you enter into full-time employment in your 20s. To live a luxurious lifestyle, you should be putting aside as much of your monthly income as possible.
Invest In A Second Property
If you can, investing in a second property can be an excellent way to sure up your financial security in retirement. You could consider investing in a rental property so that you will always have rental income to supplement your retirement funds. You could also consider getting a holiday home that you can move into when you retire.