 If you’re close to retirement, it’s essential that you start planning ahead to ensure you make the most of your years beyond work. With so much to consider, it can seem overwhelming but here are the top 10 important things to be aware of before you hang up your work hat:
1. Understand your pension and savings options – From workplace pension schemes to personal savings plans, take time to understand all the available options and choose one that works for your future lifestyle.
2. Know the State Pension age – Take time to familiarize yourself with the State Pension age so you’re aware of when you can receive your retirement income.
3. Decide what type of retirement you’d like – Spend time imagining and exploring what your ideal retirement looks like, whether that’s long haul trips or starting a business, consider what makes you tick and work towards making those goals a reality.
4. Start planning how to make money – Retirement doesn’t mean you can’t earn an income. Consider whether part-time, contract or freelance work appeals and use this time to up-skill.
5. Set your budget and save for rainy days – Create a budget for the lifestyle you desire in retirement and aim to save for potential difficult periods such as an illness.
6. Start reducing your tax liabilities – Find out which tax reliefs are available for pension contributions to reduce your tax burden.
7. Make sure your will is in order – This may not be the most enjoyable job to consider, but make sure your will is updated in case anything happens to you.
8. Find out if you’re eligible for state benefits – From reduced Council Tax to pension credit, familiarize yourself with what’s available so you can maximize your finances.
9. Seek advice on long term care options – Whether that’s getting a good deal on a long term care insurance or planning how to best support ageing relatives, ensure you’re fully informed.
10. Compile important documents – Ensure your medical history, bank account information and bills are all documented in one secure location, ready to share with a loved one or your lawyer if needed.
There are lots of different considerations before retiring and hopefully these top 10 things have given you some useful points to get you started. Taking the time to plan and save before retirement will go a long way to ensure you have a happy, secure and financially comfortable life in retirement. Good luck!
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