Can You Afford To Retire In 2023?
If you’re thinking of retiring this year then here’s my step-by-step guide on what you need to think about before you actually taking the plunge… ◆ Make a financial plan This may not sound exciting but it’s hugely important to do some sums first. Even if you’ve got a pension pot put by, chances are you’ll have less money coming in once you give up full time work. Start by going through your household expenses to work out how much you need each month for bills and food, as well as some treats like a trip to the cinema or holiday.
◆ Tot up your savings and investments
Find out how much you’re worth. Check the value of pensions, savings and investments by calling providers, and it’s worth considering the value of your home too, especially if you’re planning to downsize to release some cash.
◆ How much will I need in retirement? There’s no magic figure, but according to retirement specialist Wealth at Work a single person needs at least around £11,000 a year for even a basic standard of living and at least £17,000 for a couple.
◆ Get free pension guidance
If you’re over 50, you can get free pension guidance through the Government’s Pension Wise service. This explains your options. However it’s not the same as financial advice – which you pay for.
◆ Boost your income
Want to retire but need some extra cash?
You could work part time, either by asking to reduce your hours in your current job, or by doing something different. This could be anything from dog walking for your neighbours to renting out your spare room or driveway to make money.
SUE’S TIPS:
◆ You can get a state pension forecast to see how much you’re due at WWW.GOV.UK/ CHECK-STATE-PENSION
◆ Under the Government’s Rent A Room Scheme you can earn up to £7,500pa tax free letting out a furnished spare room.
◆ Find out more about the Pension Wise service and book an appointment through this website: WWW.MONEYHELPER.ORG.UK/EN/ PENSIONS-AND-RETIREMENT/PENSION-WISE