Planning your retirement can feel a little daunting. You’ll want to ensure that you are financially secure, and figure out the best way to protect your retirement savings. As you transition into retirement you need to adapt strategies that protect you from significant financial losses in your later years due to mistakes exploitation or fraud. To help you navigate this process here are some key areas to focus on.
1 . Consider health and social care costs
If you’re keen to protect your retirement savings it’s a good idea to consider health and social care costs. People are living longer, and social care costs are on the rise. Retirees need to think about managing their care expenses. When you’re planning your retirement you should think about how much you’ll need to save to cover your care.
2. Consider inflation
When you’re planning your retirement you’ll also need to consider inflation. The cost of living rises over time, and this will have a direct impact on how far your savings go. While you can’t stop inflation you can attempt to invest more, and boost your savings. Sadly with inflation currently running at about 8%, you will find it difficult to find an interest rate to match this. Remember the Icelandic banks, if a deal looks too good to be true it probably is. However, there are also other options:
- Consider investing in real estate.
- Use robo advisor apps to invest small amounts over time.
3. Work with a financial advisor
The best way to protect your retirement savings is to work with a financial advisor. A finance professional can help you to assess your situation, plan for the future, set goals, and make key financial decisions. Choosing the right financial advisor is important, you’ll want to choose someone who you can trust. When you’re conducting research ensure that you read up on each company you are considering. Find out how much experience they have and read any available reviews. You may also wish to appoint a trusted individual to supervise your financial transactions.
4. Learn everything you can
To protect your future finances it’s helpful to learn as much as possible. There are lots of ways that you can learn about preparing for your retirement. Take a look at online magazines and blogs, books, and podcasts. Here are a few useful options to get you started:
Money Saving Expert
A U.K. based website and forum that is full of good advice and money saving tips.
Tune into this podcast to learn everything you need to know about retirement. Every week Roger delves into a range of useful topics including pensions, IRAS, insurance, building wealth, and being happy during retirement.
Another great podcast about retirement, here you’ll learn plenty of tips to help you work towards your retirement goals. When you take the time to learn about retirement you’ll stand more chance of improving your financial health.
5. Protecting your finances
Whatever your situation it’s important to get the right financial advice. If you’re in a couple it’s fairly easy to navigate your finances together. Divorce proceedings can make the process harder, so it’s useful to get some support. If you own a company with your partner you might be wondering is a limited company is protected from divorce? For more information take a look at the Fuller Family Law website. Remember that in the U.K. the first £1000 of interest earned is tax-free so it is a good idea to check that both of you are using your full allowance.
6. Finding lost savings accounts
If you think you might have lost a national savings account or building society or bank account my lost account is a free online service that lets you check. It holds details with thirty banks and forty-three building societies. If you find an old account you will have to contact the bank or building society directly.
(collaborative post)