There’s plenty to consider as you approach your retirement. Whether you want to take up a new hobby to fill your time or visit new places, the sense of freedom that comes at the end of your working life can be a thrill.
However, it can also be a time of concern for many. Ending work commitments can mean an end to a regular income outside of any pension savings that have been made over your life.
Indeed, statistics show that almost 40% of retirees don’t feel as though they are financially prepared.
This typically leads to a change in lifestyle and has been compounded recently by the sudden steep rise in living costs such as groceries and energy bills.
Here, we’ll look at different financial options available to retirees looking to avoid money troubles.
The role of money in retirement
While giving up work gives you a pass towards freedom in retirement, your finances will dictate how you spend that time to a large extent.
If you have the means, retirement could mean taking dream holidays, funding home improvements or helping your family members achieve their goals.
Whether you have a large savings pot to cover this or you explore options such as how equity release works, having a strong financial footing increases your sense of freedom.
However, it’s worth bearing in mind that your retirement could last a long time – even as much as 30 years – and you may well have to rely on that pension pot for all of that time.
How financial struggles impact health and wellbeing
As at any stage of life, concerns over your financial situation has an immediate impact on your mental wellbeing and can also have a knock-on effect on those around you.
The soaring costs of energy bills and groceries also have a harsh impact on the life of pensioners, as they may be forced to accept a poorer diet and live in poorer conditions.
Living through any of these conditions is difficult, and a focus on longer-term finances may be required to ease some of the burden.
How you can avoid financial worries in retirement
Whether it’s making savings here or there or increasing your pension pot, there are several ways in which you can ease the financial pressures of retirement.
- Review spending: If there are non-essential areas that can be cut back, it’s worth exploring this. Leaving a focus on essentials such as heating your home and paying for shopping will guarantee your retirement is not lived out under poor living conditions.
- Release funds: Equity release is an effective way of bolstering your retirement income and can also be used to fund ambitions you may have held for your retirement.
- Boosting income: If you are fit enough, a part-time job can provide you with extra income to top up your pension.
