10 Ways to Maximise Your Retirement Savings

  1. Be Tax Efficient with Withdrawals.
  2. Focus on Creating Retirement Income.
  3. Make Trade Offs — Know What is Important to You.
  4. Prioritise Spending on Yourself.
  5. Look at the Equity in your Home.
  6. Get the Right Advice on When to Start Taking Your Pension.
  7. Be Prepared for Spending Shifts.
  8. Have a Plan for Major, Unforeseen, Expenses.
  9. Talk with your Spouse/Partner.
  10. Keep Planning.

No matter whether you find money management and living within a budget easier or more challenging, everyone needs some help advice at some point in their lives. One of those more critical times is on making money last during retirement, so to help out we’ve made our top 10 tips for managing your money during your retirement.

  1. Be Tax Efficient with Withdrawals.

Every penny counts when managing money in retirement and that is especially true when it comes to tax efficient savings.

Every retirement account has its own set of income generation options, dictating the options you have when you come to take withdrawals.  You need to be aware of the tax implications prior to choosing to start taking benefits from your pension(s).  Broadly speaking, the amount of pension you receive will have a direct impact on the level of income tax you will pay. Taxes are really complicated and what is best for you could well be different from what is best for anyone else.

Tax efficiency is one compelling reason why you might want to work with a good financial planner for retirement.  You will want to look for someone with experience and up-to-date knowledge in retirement drawdown strategies – Ideally a chartered financial planner. 

  1. Focus on Creating Retirement Income.

If you have been saving money for retirement, you have may have been worried about stashing aside as much as possible and maximizing your returns on investments.

Talk to our advisors to make sure you’re getting the most out of your money, and that it’s working as hard as it possibly can for you.

  1. Make Trade Offs — Know What is Important to You.

“I want it all and I want it right now” is not a retirement money management mantra that works well for almost anyone.

The good news is that at this point in our lives, we know — better than ever — what we like and what we want.  If you focus on what is important to you, you may find that you can spend less overall.

If, like the majority of retirees, you need to live to a budget in retirement you should prioritise spending money on the things that are the most important to you.  Cutting back on waste and unimportant things will help you to lead a more enjoyable and fulfilling retirement.

  1. Prioritise Spending on Yourself.

Family is one of our biggest sources of joy.  However, unless you have budgeted for helping out adult children you’re your brothers and sisters, you simply might not have the money to help them out financially.

Once you are retired, you do not have as much opportunity to make money.  Consider if It’s time to be selfish, and to put yourself first rather than spending money on others?  After all, you’ve worked hard all your life and you’ve earned it!

  1. Look at the Equity in your Home.

For most households, home equity represents our biggest source of wealth and there are a variety of ways we can use that wealth to help pay for retirement.

Downsizing is common and simple way to access the money you have in your home and a great option if you are living in a home that is too large for your needs in retirement.

If you love where you live and want to stay there for the rest of your life, then borrowing against the equity in your house is a way of obtaining capital without the need to move home.

  1. Get the Right Advice on When to Start Taking Your Pension.

The new Pension rules are complex and can be a little difficult to understand. Make sure you sit down with an advisor and take the appropriate planning advice.

  1. Be Prepared for Spending Shifts.

Just because we have retired it does not mean that we don’t continue to evolve and change.

When we first retire, we might spend more than before — we may be active and do lots of things.  After that, people often enter a period of slowing down and staying closer to home and spend less than at almost any other period of their lives.  In old age, medical expenses may cause spending to spike.

When planning for managing money in retirement, it is useful to be mindful of these shifts.  A financial planner will work with you to plan for a number of potential scenarios.

  1. Have a Plan for Major, Unforeseen, Expenses.

Expect the unexpected is the motto here. If the boiler breaks down, or your car is irreparable at its next MOT, what would you do?

Have a plan for major, unforeseen, expenses so that you’re not taken by surprise when they happen.

  1. Talk with your Spouse/Partner.

It’s possible that you and your partner could disagree about the kind of lifestyle you want to live in retirement – so make sure you plan together, so that you’ve both agreed on your aims.

Because your retirement money management involves both you and your spouse, it is important that you get on the same page for spending. 

  1. Keep Planning.

Retirement is not the end of the road for managing money in retirement.  You cannot simply create a retirement plan, retire, and live happily ever after.

You need to keep assessing your situation and adjusting your plans as you move through life.  Maybe your priorities change or your investments perform differently or perhaps you decide to go back to work (or perhaps not!). These events will profoundly impact your overall financial situation.

It’s also important to continually meet with your financial advisor – once a year is normal, but if you need to see them more frequently then make sure you stay in contact and get that meeting sorted. Your retirement should be pain and stress free, so do consider letting us help you to make it that way

Retirement Savings

Start planning your future. Speak to us today.

Contact Us

Seventy Financial Planning
The Apple Store, Haggs Farm,
Haggs Road, Follifoot, Harrogate,
HG3 1EQ

01423 611004

[email protected]

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