• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Finance Girl

Digestible finance news for all

  • Green /
  • Student /
  • Business /
    • / Employment
  • Shopping /
    • / Motoring
  • Home /
  • Money Advice /
    • / Making Money
    • / Saving Money
    • / Debt
    • Loans
  • Investing /
    • / Alternative
  • Travelling /
  • Retirement /
  • Property /
  • Life /
    • / Mental Health
    • / Eat & Drink
    • / Manchester
You are here: Home / Retirement / How to have formidable finances when you retire

How to have formidable finances when you retire

August 19, 2014 by Julie Leave a Comment

Take Control of Your Retirement

“He was only two days from retirement!”

You’ll hear that old cliché in almost every cop film as some old buck on the police force meets a sticky end in a plot-altering heroic act. They’ll bite the bullet capturing that one thing that eluded them after 50 years of coasting on the job – true honour.

But that sticky end means they missed out on all the complications of retirement that we normal, non-action film participants have to suffer. Indeed, if you’ve not prepared for those autumn years, your bank account will be hobbled by the meagre sums of a state pension and little else.

Yet, having the right savings, according to finance site This is Money, could let you “upsize” your property and live those final years in the location of your dreams.

So what preparations should you make to ensure your bank account stays heroic during your final years?

Tap into your home

If you want to feel safe and comfortable during retirement, you may need more of a financial safety net than you currently have. One way to get those finances is to tap into your home. Its value, or equity is available to borrow against through a home reverse mortgage. But, before agreeing to a traditional mortgage, consider signing a Jumbo reverse mortgages instead. It is a loan specially designed to help you when you retire by letting you use the money care-free for many years. You can even select how you want to receive your reverse loan payments. If you select monthly installments, you will receive monthly funds. That will somewhat simulate the paycheck you no longer receive for working.

Prepare for the end

Those decades speed forward in a surprise, and soon you’re staring at your weathered, 80-year-old frame – you were certain you were 60 just moments before.

Time catches up with us all. But, at the very least, you can be prepared with prepaid funeral plans to unburden any financial strain from your family.

With inflation raising the price of funerals every year, a one-off payment from your next of kin after you pass could leave them circling a drain of debt. But with a funeral plan, you’ll be able to make a series of payments that won’t break the bank, ensuring you’ve got that final, inevitable eventuality covered.

Don’t suffer rainy days

Despite the current low interest rate economy, there’s never a bad moment to be saving cash. To prepare for those times when your money is being stretched thin, set up a standard savings account and deposit a reasonable amount every month.

And if the coffers of your rainy day fund are brimming, you could even use some of it for a holiday.

Grab a pension NOW

With the state pension age set to rise, setting up a private pension fund (which you can access a whole decade earlier) will allow you to hit retirement earlier and enjoy those idle days for longer.

But to make the most of a private pension, you have to start saving as early in life as possible. It’s never too late to start, but it is a case of the earlier the better.

Indeed, Chancellor of the Exchequer George Osborne was recently praising those with the foresight to take out a private pension, stating that those “who have worked hard and saved hard all their lives, and done the right thing, should be trusted with their own finances”.

At the end of the day, having adequate dough for your retirement will allow for plain sailing. So don’t make two days before your retirement the time when you start planning.

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)

Related

Filed Under: Retirement

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

CommentLuv badgeShow more posts

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Julie Cheung / Finance Girl

Manchester blogger with an interest in personal finance, investing and mental health.




☆ Current Favourite Reads

☆ Top Finance Book Picks

   

☆ Get Cashback Shopping Online ☆

With over 3,800 retailers including M&S, Waitrose, Argos, Expedia, Amazon and eBay!

Read how I made £521 on Topcashback here.

Recent Posts

  • 3 renewable home investments to save you money
  • 3 days out you can do on a budget
  • Is car finance a better option than buying outright?
  • 5 freelance jobs you can take on for extra cash
  • 5 great vegan gifts on a budget
  • How Entrepreneurship Is Changing the Landscape of UK Housing – Reviewing Concept Capital Group Ltd
  • Car Theft: How to Protect Your Car
  • The Only Two Books You Need To Get Started In Personal Finance and Investing
  • The Connection Between Cryptocurrency and Playing Games
  • A beginner’s guide to VR
  • What Does Good Dementia Care Look Like?
  • How to heat your home on a budget

Invest in Gold and Silver

Read my post: Should You Invest In Gold?

Footer

ABOUT

CONTRIBUTE

CONTACT

RESOURCES

FOREX TRADE PLAN

Copyright © 2018 Julie Cheung
 

Loading Comments...