Entering your senior years provides an excellent opportunity to take a fresh look at your finances. With your children likely grown up or moving out and possibly your mortgage being paid off, your financial situation may have changed.
With a shift in your personal circumstances, you may want to take a moment to reflect on your current situation to make well informed choices moving forward. Taking a proactive approach to financial planning at this stage of your life could help to save you money.
Here are 5 key steps to help you organise your future finances to make you feel at ease during retirement:
You may have retired or are leading up to your retirement, either way, it’s time to ensure you’re on track to achieve your financial goal. Review your pension pot, what savings you have put aside or even investments you may have made over time.
Did you know up to a third (34%) of adults either have no savings or less than £1,000 in a savings account? That’s a substantial number of people who may not be prepared for their financial future after they stop working. This highlights the importance of starting better saving habits and financial planning to ensure a more secure retirement.
If you haven’t already, calculate how much money you’ll need to maintain the lifestyle you intend to have after you retire to give yourself a clear target to aim for.
Having personal debt is extremely common, but it’s not something you want to be carrying through to retirement or your later years. By reducing/paying off your debts before you reach retirement, you won’t have to worry about dipping into your pension pot.
Debts often come with high interest rates, which can result in you spending significantly more than you originally planned. Start by prioritising the high-interest debts, which could result in you spending more (such as credit cards). Set yourself a clear plan to wipe out debts and avoid taking out new debt where you can.
It can be tricky to prioritise or seem overwhelming to decide what to pay off first. If this is something you struggle with, seeking financial advice (for example a financial advisor) could help you explore your options and minimise stress.
Making your health one of your top priorities can save you money and add years! Cut down on bad habits such as drinking too much alcohol and smoking; by doing so, you not only improve your wellbeing but also save money over time.
Focusing on your fitness, a nutritional diet, and looking after your body and wellbeing are all ways to lead a healthy lifestyle. By looking after your body, it’ll look after you.
As well as exercising and eating well, making sure to schedule regular medical checkups can help to identify any potential issues early on.
Keeping on top of your health can result in fewer medical expenses, a better quality of life and even improve your finances. Mitigating these health risks now can ensure that you can lead a longer, more comfortable life.
No one likes to think about leaving their family behind, but when organising your finances, you should consider life insurance. It provides a valuable safety blanket that can offer reassuring peace of mind, as well as financially secure your loved one’s future.
Whilst there are different options available, a popular option is an ‘over 50s plan’. This is a policy type that doesn’t ask medical questions during the application and offers guaranteed acceptance to UK residents aged 50 - 85.
Finding the best deal on a policy can be a real money saver. There are many insurers who offer this policy, but finding the best price can seem like a daunting task. Make sure to use a life insurance broker or conduct your own research to explore the best over 50s life insurance options on the market.
Having a policy in place can give you confidence in the years to come that your family are protected, providing an inheritance and/or covering rising funeral expenses.
It’s recommended to have an emergency fund put aside in case of an emergency. This can be crucial to anyone at any stage of life. You never know when unexpected expenses may pop up, whether that’s home repairs, medical bills or if you’re yet to retire, a loss of income.
Having these funds in place can provide that extra layer of financial security so you don’t need to dip into your future/retirement savings.
Not only does this protect you from any financial setbacks, but it also allows you to focus on planning your future comfortably without the stress of the unknown.
