Many of us work our entire lives with the hope of enjoying a good few years of retirement after finishing up full-time work. The road to retirement requires a great degree of financial planning and a keen eye for detail. While we will all be entitled to a state pension when we reach our mid-sixties, a lot has been written to suggest that living off of this money alone can be a struggle.
Additionally, with the UK’s ageing population, we are likely to see changes to the age of retirement and the amount the government can give us within our lifetimes. Those who are 60 and planning for retirement are likely to have a massively different experience to those who are 30 and planning for retirement. With this in mind, here are some tips and advice to help you build a solid financial foundation in the run-up to your retirement.
Invest in a Private Pension
The experts are clear on this. If you can afford to put money away now, you should be doing everything that you can to put a proportion of your earnings into a pension pot to help you when retirement comes round. There are various options available on the market to help you at every stage of your career, whether you want to put away large amounts of cash or apportion a small amount of budget from month to month.
The government has also made steps to intervene in the situation by encouraging employers to set up a People’s Pension scheme. With this scheme, people have to deliberately opt-out of having a predetermined portion of their income taken out their salary from month to month and put into a pension scheme, effectively making people save with as little effort as possible.
Downsizing in the Long-term
We have discussed the possibilities of putting money to one side from each wage you receive as a means of building up finance over a long period of time. For those who are in low-paid jobs, or have high monthly expenses, it can be difficult to realistically put a decent amount of money aside from month to month. The option for these people is to downsize their property and release some capital to allow them to retire in good time.
There are plenty of online guides available to help you with this, and the property market in the UK means that a lot of younger people are looking for sizable homes to move in to. This will help to drive interest and ensure that you get the best possible value for your home if you’ve fully paid off your mortgage. Additionally, having a bit of extra cash saved for retirement will help to ease the burden of some avoidable costs like healthcare in later life and funeral expenses.
Asking for Help when Needed
Many people who are from the baby-boomer generation feel that it is their job to put their head down and get on with things, no matter how bad their circumstances become. This too-proud-to-ask-for-help will only cause you trouble in the long-term. If you know you are having difficulty, getting talking to friends or relatives to see what support is available to you. Keeping these things to yourself can leave you vulnerable, and will only cause you further problems.
The UK’s ageing population is right to be concerned about how their finances will allow them to lead a fulfilled retirement. While the government is employing initiatives to help, elderly people who are likely to fall into financial trouble, make sure you do your part and ensure you enjoy your retirement to the very fullest.