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How to Plan For a Happy Retirement

Retirement can creep up quickly and many people find they’re unprepared. Planning retirement in advance is essential if you want to live a good life in old age. Getting your finances in order now will help you set the scene for a happy retirement.

So, how can you get prepared? Take a look at how to get your plan into action.

How to Plan For a Happy Retirement - image of older couple sitting on a bench
Image by ErikaWittlieb from Pixabay

Work Out Your Retirement Income

Do you know how much money you’ll have to live on when you’re retired? Many people find out much later than they should. You can find out how much you’ll receive during your retirement today.

Once you know what you’re likely to receive, you can work out what you’re likely to spend. Work out your expenditure on essentials like paying your bills, food, clothes etc. This will give you the money you have left for non-essentials.

If you need to boost your income to cover any of your expenditure, now is the time to start putting money aside.

Start a Savings Account

Every little helps when it comes to retirement finances. If you’re dreaming of holidays abroad or second homes, you’ve got no time to lose. There are tons of banks with incentives to open savings accounts and you may gain on what you save through interest over the years.

Starting a savings account means getting into the habit of putting a percentage of your wage to the side. If you’re already doing this through your employment, it can seem unfair but it will all benefit you in the future.

Wait As Long As You Can

You can start taking your state pension from the age of 55, even if you’re still working. However, the earlier you start taking it, the earlier you’ll run out of money. If you can wait as long as possible before you start dipping into your pension, you’ll be better off in the long run.

This may mean working for as long as you can, putting money aside in your savings, or becoming self-employed so you can set your own working hours but still have a small income to subsidise your wage in retirement.

Ask a Professional

Getting professional help from financialadvisers.co.uk is a great way to start preparing for your retirement. They may be able to give you insight that you would never have come across without them. They will be able to advise on the best ways to use your income and how to best prepare yourself for retirement.

The great thing about getting financial advice is that it’s tailored to your situation. You can form a specific plan that will put you on solid financial ground in the years to come.

Downsize in Advance

You don’t want to be paying for things in retirement that you don’t need. Retirement is for enjoying but cutting down on a few things may give you the disposal cash you need to do the things you want. It’s worth asking yourself whether you really need the expensive car, the second home, or the extension on your house.

Cutting down on your spending by getting rid of things that are taking big chunks of your money could put you in a better position.

Develop a Routine

Developing a routine in retirement can help in all aspects of life. You should still wake up early in the morning and cook regular meals. You should still get plenty of exercise and see friends as often as you can.

The same goes for using your money. Getting into good routines with your money will help you to use it wisely. Give yourself a budget when you go out and when you buy your weekly food shopping. 

When you do this, you’ll know exactly how much you’ve spent and how much you’ve got left to spend.

Mentally Challenge Yourself

Brain power deteriorates as we get older and it can become more difficult to deal with numbers. Banking is something that requires concentration and strong brain power. You can make sure you stay alert with your finances by challenging yourself mentally.

Crossword puzzles, math problems, and reading books can all keep your mind sharp as you age. You will remain proficient with language, literacy, and numbers. When it comes to your banking, you can make sure you don’t miss anything or get caught out by scammers.

It’s never possible to be entirely prepared for the future because no-one can know what the future holds. However, when it comes to planning for a happy retirement, the earlier you start, the better.

Property Investment Mistakes You Need to Avoid

Are you planning to start investing your money in property? Maybe you have started out on your property investment journey recently. Either way, you have probably decided to take the opportunity to put your money into bricks-and-mortar to help see a healthy return on your investment. There is no doubt that property investment can be lucrative, which is why it is one of the most popular ways to invest money. Even in times of economic uncertainty, property investment can deliver returns if you buy wisely. However, putting your money into property is not without its pitfalls. As a newcomer to the world of property investment, it is crucial to be aware of the potential issues so that you can take action to avoid them. With this in mind, here are some of the property investment mistakes that you need to avoid:

Property Investment Mistakes You Need to Avoid - nice family home image
Image by ErikaWittlieb from Pixabay

Buying With Your Heart, Not Your Head

Buying a property as an investment and choosing one you would like to live in are two very different things. Choosing an investment property based on how you feel about it is nearly always a mistake. Investment properties should always be purchased based on figures and understanding of the current local housing market. Thinking about the return on investment you will achieve when you sell the property or the rental yield it will generate are crucial considerations. Keeping these two outcomes in mind will ensure you make informed investment decisions. 

Paying too Much for the Property

When you are hoping to make a profit on a property, you mustn’t pay too much to purchase it in the first place. To make a profit, you must ensure you buy the property under value rather than over. Understanding the ceiling price for the area and how the local housing market is performing should ensure you do not overspend.

Overlooking Opportunities to Save Money

As you become more experienced in property investment, you will soon be able to spot opportunities to save money. Carrying out thorough research and seeking out incentive schemes can help you find some excellent ways to make savings. If you have bought a house that requires so much work it is uninhabitable, you may even be able to claim a refund of stamp duty. Looking out for these opportunities will help you find more ways to save money when investing in property.

Spending too Much When Renovating the Property

Renovating your first property is always an exciting prospect. Refurbishing a home can provide some impressive results and can also significantly increase the value of the property. However, many new property investors overspend when renovating homes. Spending more on renovations than you can expect to realise in re-sell value is a big mistake and could leave you making a loss rather than a profit. Understanding how much the property will be worth after renovations are completed is essential before you start work. Based on these figures, you can set a realistic budget and contingency fund that allows you to make a profit.