Planning for retirement is not something many of us like to think about, particularly if we’re nowhere near retirement age. Planning is exactly what retirement needs, especially when it comes to the financial side of things. If you have debts at the moment but have no action plan in place to pay them off, then you may want to think about doing this as soon as possible in order to ensure that you have a good foundation by the time you’re ready to give up your job for good.
The best way to make the most of your cash in retirement is to do the following:
Get professional advice
Before you reach retirement age, you should ask a financial planning expert about where to put your money and what to do with it once it’s released. If you’re paying into a pension, for instance, then you may get the option to take a lump sum payment or a regular yearly ‘salary’ from it until your death. What you’ll need to consider is how many years you’re likely to live after retirement and which option will get you the most money depending on the time you have left. Of course, no one can predict exactly when they’re going to die, but taking a lump sum payment and enjoying the money may be a good idea for those who are ill or who have taken their retirement payment particularly late in life. In addition, there are many small strategies like attending tax planning courses to help you save money on your tax, and it is worth delving deeper into the subject as you may find methods you didn’t even know existed.
Claim what you’re entitled to
Those in retirement can often get a number of free perks and money off certain things. For instance, the over 60s can currently get a free bus pass, which allows completely free travel in buses across the UK. We really recommend this as during the retirement age do things like eye tests and some dental work. If you’re 75 or over you can qualify for a free TV licence. You’re also entitled to extra money like winter fuel payments if the temperature drops below a certain degree for a certain period of time.
Check if you’re eligible for other benefits
Many people think that the state pension is the only benefit they can receive from the government once they reach retirement age. In fact, depending on your circumstances, you can also claim certain other benefits like pension credits (to top up the amount you get from the state pension), housing and council tax benefit, attendance allowance (if you’re disabled and need care) and carers allowance if you are the full time carer of someone else in your household. These extra income streams can make a huge difference when you’re no longer working so make sure that you’re getting everything you’re entitled to.
Retirement should not be about basic survival, but about enjoying the fruits of your labour. If you can build up a good foundation for when you decide to stop working, then your retirement should be much easier and you may even get to do some of the things you never had the money or the time to do while you were working.
This article has been written by guest author Coral Pearce-Mariner. If you’d like to see more of Coral’s work check out The Same Day Guarantor Loans Blog