Your retirement income is all you have to keep you going as you get older. You may have scrimped and saved, and worked very hard to build your income to what it is so far. However, how do you know your income is safe?
Experts have recently warned that millions of people could be forced to delay retirement due to plummeting oil prices. If you’re on the point of retirement and many of your funds are still invested in the stock market, you can expect a reduction in the size of your pension. As this is the case, you’ll either need to get on with it or delay your retirement. This is sad news, as more people are on track with saving for their retirement than ever, but most people still aren’t putting enough away.
It’s up to the government to help people learn more about saving for the future – it shouldn’t just be down to the consumer alone. Here are some tips for a financially safe retirement:
- Many people choose to take on part time work so they can continue getting a little income. The only thing you have to be OK with is sacrificing your time.
- Opening a savings account could help you to generate more income if you choose the right one. Have a meeting with your bank to discuss the best one for you.
- Get income by renting out a property that you own. Having reliable tenants is a must for something like this.
- You can take equity out of your home if you feel like moving is a good choice for you. Arbor living open days can give you an idea of what is available for you.
- To put them simply; a bond is a debt. When you buy a bond, somebody owes you money and pays interest on it. It can be a good way to expand your investment portfolio and add to your retirement fund.
- Choosing large, stable and reliable companies to purchase stocks from could earn you money to add to your retirement fund. This can be risky, especially if you don’t buy the right kind of stock or too much. You want to keep your stocks under control and make sure you select the right companies. It is essentially part ownership of a company, rather than a debt.
They are all ways you can add to your retirement income over a certain period of time. The sooner you start, the more money you’ll have when the time comes. It’s important you keep the methods you use varied to give you the safest retirement. Make sure you set a clear retirement income goal, so that you have something to stick to. Work out what you need to live comfortably once you’ve stopped working and aim for that. Remember, nothing is set in stone here. It’s just an estimate to help give you something to work towards. Keep in mind that some bills might go down while others might go up. As you may have paid off your mortgage, that might make your life much easier. That being said, you’ll probably end up spending more on your household bills and entertainment.
Thinking about retirement can be difficult for some people. Afterall, it’s a case of estimating how much you’re going to need to live, and for how long. Nobody knows how long they are going to live, although they hope a long time! You might end up living a lot longer than you think you will, so having more cash in the bank is always going to be useful. Think of things like rooms you could rent out, things you could maybe sell, and any investments you may have made in the past. They can all make a huge difference to your retirement income. Paying off your debts as soon as you can is a good idea too. You don’t want to still have these to pay off when you’re living on your pension alone! There are tons of guides online that can help you to work out what you need to live a comfortable retirement. Remember to take into account any lost pensions you might have had in the past. These can top you up and make it easier for you.
Living comfortably should be everybody’s goal as we age. There are many things we can’t change, and there are some things we’ll never know. Saving as much as you can in lots of different ways will be sure you’re ready for whatever happens.