We frequently get asked for the best tips on preparing for retirement, so we decided to ask the experts – those who’ve already retired. Read on to learn what they told us, and discover ten of the best retirement planning tips.
1. Keep An Eye On Your Investments
Many people find that the money you’ll need for the first 5-10 years of your retirement is the most vulnerable to overspending. If you spend this money, you’ll find it more challenging to replace it. Try to find investments that will provide you with a predictable income, even though these might give you a lower return.
2. Prices Will Inflate
Inflation is a fact of life, and rising prices will eat into your buying power. Remember to factor inflation into your retirement plans, so it doesn’t come as a surprise when there’s a hike in prices.
3. Discuss Things With Your Partner
Just as you would talk over a significant financial decision with your partner, do the same about your retirement. Being on the same frequency as your partner regarding the financial aspects of your retirement will help avoid disappointment or misunderstanding when you come to retire.
4. Focus On Your Health and Well-being
The cost of healthcare is high. Therefore, focusing on your health and well-being in the run-up to your retirement and when you’ve retired. Many people fail to consider healthcare costs in their retirement planning. Ensure you allow for these potentially considerable costs when planning your post-work finances.
5. Put Together a Budget
To budget effectively, you should first know what you have available to spend. Unfortunately, many people fail to understand how much they’ll have available to live on in retirement. Of course, you may not know exactly how much you’ll have, especially if your retirement is quite some time away. However, you can speak with an investment professional to give you a better indication of your potential retirement income. Once you know this amount, you can produce a budget.
6. Consult an Investment Professional
Just as you’d go to a medical professional to seek advice on your physical or mental health, you should consider consulting a professional about the health of your investments. Ask friends or family members if they can recommend someone, as referrals are often the best way to find a good investment professional.
7. Watch Travel Expenses In Retirement
You may want to spend some of your retirement years travelling. However, as you get older travelling becomes more challenging and more expensive. Consider making any significant trips before you retire, and save your retirement travels for locations closer to home. When you travel, keep a tight rein on your spending, just like the habits you’ll adopt at home.
8. Get Free From Your Mortgage
Accommodation costs comprise a significant proportion of a person’s monthly expenses. Therefore, paying off your mortgage will not only ensure you have a roof over your head, but it will free up money to spend on other things.
9. Extend Your Work Life
It goes without saying, the longer you can continue working, the more money you’ll have for when you retire. Of course, working longer might not be what you had initially planned, but it could allow you to save more and give your pension more time to grow.
10. Anticipate Spending More Than You’d Planned
Even with careful and strict budgeting, you should expect to spend more than you’ll have anticipated. To account for this overspending, factor it into your budget by including some spending on unexpected items. Also, consider things like maintenance and tax in your expenses and have that in your budget.
Preparing for your retirement is something you may not yet have considered. However, following these ten retirement planning tips will help ensure you are in the best position possible for a comfortable post-working life.
If you are thinking about your pension or retirement, consider using a regulated pensions specialist such as Portafina or, view the advice at Pension Wise. It is important to always do your research thoroughly and to not just sign up with the first company you come across. As this will determine your financial security during your golden years, it deserves serious planning and investigation.
Our retirement is something that we often overlook or we think that it’s so far in future that we put it off and it becomes too late. Be sure to do your planning accordingly to ensure that you are able to enjoy the best years of your life, worry free and in comfort.