Getting Your Finances in Order Before Retirement

As your golden years are approaching, you’ll want to make sure your finances are in order. This will ensure you can make the most of your time of rest and relaxation without pinching the pennies. While everyone’s relationship with money is different, there are a few essential steps you can take to make your retirement as comfortable as possible.

Top Up Your Pension

Depending on how many years you have before retiring, you may want to top up your pension if it’s not quite where you want it to be. Make sure you know exactly how much you have and spend some time tracking down any lost pensions. You may even decide to switch providers to suit your needs. Wealthify offers an easy way to bring all your pensions together, giving you better visibility and easier access – check it out today.

Create a Budget

Now that you know how much you have to work with, it’s time to plan how you’re going to use that money wisely. While you don’t need to keep an incredibly strict budget, you should calculate expected monthly costs. It’s okay if some years use more of your funds than others, but you should be aiming for balance in the end. For example, if you decide to travel extensively at the beginning of your retirement, you may need to live more simply for a few years after to make sure you don’t deplete your pension pot too quickly.

Play it Safe

If your retirement is approaching soon, you might be tempted to try and boost your funds if you haven’t saved as consistently as you’d planned. But it’s important not to risk your savings at this stage, as you could end up having very little to live on. High-risk investments may hold the promise of incredible rewards, but remember you stand to lose everything you’ve worked for. Hold onto what you have and look into low-risk ways of increasing your bank balance.

Take Care of Debts

The last thing you want is debts eating into your pension fund when you’re retired. But clearing debts is easier said than done. If retiring completely debt-free isn’t on the cards for you, make sure you’ve negotiated the best repayment plan for you and pay close attention to interest rates. However, if you do have any spare cash in your savings account, it might be worth clearing a few debts if you can’t manage all of them.

Consult a Professional

If you’re struggling with organising your finances before retirement, whether that’s because you haven’t saved enough or have a lot of debts, an advisor can help you plan the best course of action. They can not only help you to make wise investment choices, but can help you to plan and budget so that your money goes further. If you already have holidays planned, make sure you let them know so that they have a complete picture of your outgoings. It’s never too late to ask for help, so if everything is happening last minute, that’s all the more reason to reach out.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.