Article by Naomi Webb
Whatever age you may be, it’s always important you look ahead to those twilight years when you must depend on whatever money you have saved while working. For some, it can be a trying time financially – the average state pension is just £155.65 a week, and so can easily get swallowed up and not everyone has their own private pot to help them fund their lifestyle.
Do you have savings or assets?
A good nest egg is important when retiring. You need back up funds to support the income you receive from your pension. Research conducted by Which? has discovered that most retirees require around £24,000 a year to live comfortably, so consider this when looking at your current savings and assets. Perhaps selling your home and downsizing later down the line is where you will obtain this pot of money, alternatively it might be a good idea to set up a high interest ISA and start moving small amounts in there now.
Is your mortgage paid off?
Once this large loan is gone all that money is yours to spend as you wish. If you have not yet repaid your mortgage but are close, then it may be a good idea to increase the amount you are paying off. Only do this if it is financially viable of course, but if done correctly you could clear your mortgage faster than anticipated.
Can you afford rent or mortgage repayments on your pension pot?
If your mortgage is not paid off, or you are renting, it’s important you check that you will be able to afford making repayments using your pension. If this is not the case, perhaps you should consider downsizing.
Should you downsize?
Moving into a smaller property not only makes things easier for yourself as you grow older, as you find it harder to manage cleaning large rooms or lots of furniture, but it can also save you money. You are also freeing up larger homes for families who need them.
You may also consider a downsized vehicle for retirement. A smaller car will help save you some money. Look for engines with smaller tanks and higher miles to the gallon, and it’s always a good idea to look for eco friendly cars too, to help decrease any damage to the environment. You will often find an approved used vauxhall and many other small car brands will do the job just fine.
Have you considered a retirement complex?
Retirement complexes are an excellent option as you near old age, there are many types of new build retirement properties on the market that can set you up for your twilight years to ensure you can remain mobile and active while still being supported.
Walk in showers, hand rails and wheelchair accessible doorways and corridors are just a few elements of retirement new builds that you can benefit from. While you might not need them now, it’s good to know they’re there for the future. These new builds are also excellent for making new friends and some even include a warden who is on hand to assist you.
Many of us do not like to think about getting older, but to take the strain off your family members it’s a good idea to consider these issues now to ensure you are not only financially stable but any care you may require is covered too.