Retirement is supposed to be freeing, but unfortunately for many senior citizens that isn’t often the case.
In fact, Age UK has found that millions of older Brits are switching off their heating and limiting their energy consumption because they can’t keep up with higher utility bills. Some even live off a daily diet of soup and sandwiches just to cut their costs.It’s never too late to make financially sound decisions, and you can still turn things around in your retirement. If you want to ensure that you can cover your needs as you get older, below are the smart money moves that you need to make:
Learn how to invest safely
It’s common knowledge that you can multiply your savings by investing your money. However, not just any investment will work. Our guide on How to Invest Money recommends considering your risk appetite before investing. It’s better to establish a conservative portfolio, especially if you can’t take a big risk with your capital. You can still increase your earnings despite the caution, since putting money away for several years is more likely to get higher returns.
Plan for your financial future
It’s great to save for retirement goals as you work, but your financial planning shouldn’t stop once you retire from a full-time job. Though many link retirement with financial independence, LHH’s article on planning for retirement emphasises that it’s crucial to plan for the next stage of your life. As retirement is an opportunity to have a more intentional life, professionals should explore their future possibilities and understand the range of options available to them. Allowing for multiple, alternative streams of income will allow you to feel more financially secure during retirement.
Consider your health
As older adults are at greater risk for chronic illnesses, a switch to a healthier lifestyle is essential. You can eat a balanced and nutritious diet without breaking the bank by preparing your own meals. You can also improve your physical wellness for free by following fitness videos on YouTube, or walking around your local park. Starting these habits is a low cost and high return on your quality of life.
Maximise your benefits
Senior citizens are entitled to numerous benefits, which is why you need to maximise these financial opportunities.Lower income older citizens can apply for a Pension Credit, which covers daily living expenses, housing benefits, and cold weather payments. This benefit also increases single pensioners’ income to £177.10 per week, while couples can get £270.30 every week. Older adults with disabilities can also apply for Attendance Allowance, which entitles you to get around £61.85-£92.40 per week.
Your retirement should be a time for rest and relaxation— and it certainly can be, if you follow the right financial habits. Through the above tips, you’ll be able to maximise your earnings and manage your money properly for healthier, and happier, twilight years.