5 Retirement Tips You Need to Know
Retiring might seem like a walk in the park! It can also seem like a dream come true. However, there are still a few things you’re going to need to consider when it comes to making sure your retirement is as comfortable as possible. Here are a few tips you can try out to make sure you’re fully prepared.
1. Pay into a Workplace Pension
UK workplaces that offer pensions are required to match how much you put into them. This means you’re effectively doubling the money you’re putting away for retirement! By putting £100 of your own income away in your private pension, you’ll get £200 per month to claim back when you retire. Therefore, it makes sense to pay in as much as you can for a bigger payout.
2. Keep on Top of National Insurance
If you want to claim a state pension, meanwhile, the government will want you to make sure that you’ve paid enough national insurance. You’ll pay these contributions while working. However, if you are behind on any payments, it might affect how and what you can claim from a public pension.
The best thing to do is enquire with HM Revenue and Customs. They hold up to date records on all your contributions. If you are approaching retirement, it makes sense to consult HMRC to check you’ve paid in enough.
3. Slow Down, Don’t Speed Up
For many people, retiring can be a bit of a shock. Hard-working people can struggle to find things to do once they’ve left the day-job behind! Therefore, where possible, you should focus on winding down your work. Ease away from working life so you’re not throwing yourself into retirement with little to fill your days!
Retirement is different for lots of people, however. In any case, the road leading up to your retirement should be slow and gentle. Don’t leap into retirement freedom feet-first!
4. Clear Your Debts
Once you retire, it’s more than likely your income will decrease. Therefore, your ability to pay off certain debts is going to be a little stunted. You should, therefore, be very careful with taking on any more debt leading up to retiring, and if you already have some stacked up, strive to get them out of the way.
There is nothing worse than facing retirement with creditors knocking on the door. Therefore, be prepared to get your financial affairs in order, and relax once everything is clear. Need help? Make sure to consult a financial advisor or debt charity.
5. Move on Gracefully
Lastly, one of the biggest things you can do for your mental health in retirement is to leave your working life behind. There is little point thinking about the days you spent in active service – particularly if you are no longer able to head back to work. Focus on the future – embrace your freedom! Look fondly on your working life, but don’t get bogged down. It’s time to move onto the next step in your journey!