Coping with finances for the newly retired

0
475

You may have heard all of the retirement advice umpteen times before but in truth, it’s not until you actually reach that age for yourself that things really start to make sense.

We’re not talking about all of the free time (or surprising lack of it, which some people actually find), but more so the finances.

Having been in the world of work for decades, and collected some sort of pension along the way, the general consensus is that there will be pots of money to take advantage of. Unfortunately, the general consensus is rarely correct.

Instead, getting used to retirement and the lack of a regular income can be tricky for some people – as we take a look at some of the best ways to tackle this new stage of your life and keep up to speed in the process.

Make sure you stay on top of your pensions

At first, this piece of advice might sound blatantly obvious. However, particularly if you have worked at several places, keeping track of your multiple pensions can be easier said than done.

It’s easy to forget about certain ones and ultimately, you’re just going to lose this money.

Fortunately, there is an easy way to manage this and a Pension Tracing Service is available to make sure that you keep on top of them all.

Plan for the future again

Hopefully, you’ve made adequate provisions for the future up until now. You certainly don’t need to stop though – even though you have got over the line and reached that retirement age.

When we talk about financial planning, one example is with pre-paid funeral plans. Without attempting to be overly morbid, this is an expense which can hinder your family in the long-term. By opting for a plan, you can at least take away the inflation factor and ensure that it’s cheaper than if you were organizing later down the line.

Monitor your investments

This is a similar suggestion to the pension advice that was provided, but it’s just as relevant and potentially more lucrative.

Again, as the decades pass, it can be difficult to keep track of all of the investments which have been made over time. If you have completely forgotten about some, there’s a chance that they have ballooned in value and you have much available than you initially planned for.

The same applies to bank accounts and it’s not uncommon for people to stumble upon ones that haven’t been touched for years, but have grown courtesy of the interest over the decades.

Consider your home options

For some people, the home can be a perfect source of income as well.

Some people will opt to downsize after the family leaves home, but a slightly smaller option comes in the form of an equity release. This will at least provide you with an instant cash boost, even if you won’t receive quite as much money when your home is sold or you pass away.