You may well have spent years building up a retirement pot to ensure comfort when your working days are behind you. This nest egg holds the key for your future, and a happy retirement. You’ve worked hard all your life for your money, now you should be making your money work for you. But how do you do that? We’ve come up with five suggestions which could increase your retirement cashflow without damaging your savings.
“Know what you can and can’t do with your pension…”
There are certain rules and restrictions when it comes to pension control and withdrawal. The regulations changed in the Winter Budget of 2014, but they still remain pretty clear. For example, if you’re over 60 and have a fund worth less than £30,000, you are entitled to make a lump sum withdrawal, the first 25% of which is tax free. Other regulations apply and for more information you should check out your pension release options.
“Choose a manageable and comfortable withdrawal rate…”
You need to look at making the transition from building your retirement fund to enjoying it. And if you do too much, too soon you could be counting the cost of over indulgence. Set up a withdrawal plan if you intend to start dipping into your fund.
“Have a clear picture of your finances…”
There are various retirement financial planning services on the market which can give you a clear image of where you stand. Talk to your bank, and if you’re not happy with them, talk to another one until you get a service you are happy with. If you can arm yourself with a cashflow management system and have your balances quickly to hand, you’ll stay ahead of the game.
“Once you have a clear picture, make a budget and stick to it…”
When you have the facts at your disposal, facts such as net worth, monthly outgoings and interest rates on assets, you can lay out a budget with the help of perhaps your bank or an advisor. This will allow you to monitor and indeed alter your cashflow if you had the capacity to.
“Set some lifestyle goals and don’t sacrifice enjoyment…”
Tailor your plan to suit not only your asset management but also the things you want to do during your retirement. Maybe you want to go on a cruise, take your family on holiday or buy a luxury item you’ve had your eye on. Factor your lifestyle into your planning.