Guide to Making the Most Out of Your Retirement Funds & Finances
Retirement should be a time that people look forward to after a long career.
16:47 24 June 2021
Though often it is something that many worry about and this is usually to do with money. Many worry that a pension will not be enough for them to lead an enjoyable lifestyle, so what are the best ways to plan financially for your retirement so that you can really make the most out of this time?
Work Out a Retirement Budget
Much like when you are working, it is important to work out a budget so that you can identify how much money you need and how you can control your spending. In addition to things like mortgage payments, bills and food, you may have other plans for your retirement like travelling, moving home and new activities that may require heavy spending.
Many people are counting down the days until they are 65, but for some, the idea of working for another year or so could be appealing and could make a big difference to your retirement funds. You could always look to take a step back or find a different role that will not be as demanding if you do not want to carry on with your main role past 65.
Renting Out Property
If you have paid your mortgage off and you have plans to move then you could always rent out your property as a passive income stream. Alternatively, you could look to buy properties elsewhere and rent these out to provide a solid stream of income from monthly rent payments.
Boost Retirement Funds
Another effective way to boost your retirement fund is to use property wealth in the form of equity release, which allows you to free up the cash tied up in your home and can provide a significant boost. Will Hale, CEO at equity release company Key Advice said:
“Property wealth is established as a major factor in retirement planning with one in three people retiring this year looking to the money investing in their home as a way of supplementing their income”.
It is also worthwhile looking into investing and the earlier that you start with this the better. You do not want your money decreasing in value as a result of inflation, so it is worthwhile finding ways to make money from your money and investing can be a great way to do this. For beginners, investing in an index fund is a great option and could make a big difference by the time you reach retirement as a result of compound interest.
Hopefully, this post will help you to take control of your finances and improve your financial health for retirement so that you can really make the most out of these years.