Many people live in fear that they won’t have enough money to get them through retirement. Instead of being a well-deserved break from the working world, it turns into an ocean of anxiety with fears that you won’t be able to make ends meet from one month to the next. Angela Swan, Brand Development Manager for Sell Pension, discusses how you can maximise your funds during retirement.
You’ve worked hard all your life and saved as much money as you could, and now you feel like you deserve a break and have earned the chance to spend a little bit more. While it’s true the end of your working life does save you some money – you don’t have to pay commuting costs anymore or those over-priced lunches – but will it really be enough to make you feel secure?
Sometimes your pension just doesn’t seem like it could last you through your entire retirement. Don’t worry, just because your salary has stopped rolling in, it doesn’t mean that there aren’t other ways to create new funds and supplement the earnings from your pension pot.
Relocate to a cheaper area
Retirement is a huge transition in anyone’s life, which can sometimes be difficult to adjust to. Use retirement as a fantastic opportunity to make a big change, for example if you’ve lived in the city for years to be closer to work, then perhaps you could relocate to the country or a completely different area. Relocating could reduce your outgoings by a huge amount, especially if you have a large house and are downsizing.
Turn your hobby into a business
Having a hobby throughout retirement is a great way to keep yourself busy and active, and there’s no reason why it can’t be turned into a lucrative business. Craft hobbies, such as cushion making, homemade decorations and furniture are a joy to make and have become increasingly popular.
Do your market research before making any big decisions and invest some savings into your venture slowly.
Put money aside for an emergency
There’s nothing worse than budgeting for a comfortable retirement, but not including emergencies into the budget and draining your remaining resources as a result.
Accidents can happen, whether it’s your home or a medical problem, sometimes an unexpected event can cause your savings to plummet. Ensure that if the worst does happen and you do need some extra cash, that you have already put some safely aside to cover any unfortunate events. If the money is never needed during your retirement, think of it as a nest egg that can go straight to your loved ones.