Five Ways To Take Control Of Your Finances Before You Retire

Thinking of retiring soon?

No matter your starting point, it’s never too late to get your money sorted. Whether you have outstanding debts or savings in multiple accounts, it’s always worth getting familiar with some of the most essential tips and strategies to help you make the most of your savings and investments through your golden years.

Managing your money before retirement: Our top five tips

Set a realistic budget

Firstly, there’s a lot to save and plan for when you’re approaching retirement. Though it might sound basic, getting a clear idea of your incomings and outgoings is the best way to build your strategy. Try to be prudent, but don’t limit your spending on the essentials.

Remember that any savings or assets that you’re keeping hold of could be subject to inheritance tax payments in the future.

Get your savings in order

Saving into your pension fund is an investment. Even though it might leave you with less spending power in the years leading up to retirement, it will give you a reliable income source in the future. Keep an eye on interest rates and bank rates to ensure that you’re getting the best deal on your savings accounts too.

Remember that if you’re part of a workplace pension scheme, your employer will be contributing too. Topping up your pension pot will allow you to reap more rewards in the future, so it could be worth the wait now.

Pay off outstanding debts

Start clearing your debt as early as possible. If you have any outstanding loans or owe money on credit cards, you’ll need to review your payments before you start strategizing.

Prioritise paying off the debt with the highest interest rates, or those with higher charges for late repayments. For example, personal loans from the bank will be less likely to charge you high fees than a credit broker might. Always be prudent and try to avoid borrowing more money if you’re struggling to keep on top of things.

Invest astutely

Where it makes sense to do so, you should invest. It’s no secret that you can make more from your money by investing than you might by keeping it in a savings account, but it’s crucial to know how to do it well.

Alternatively, you might prefer to release funds now and spend more time (and money) enjoying the present moment. If you’ve considered releasing the money tied up in your estate, using an equity release calculator could help you to plan for retirement more accurately.

Seek professional advice

Lastly, it’s understandable if finance management isn’t something that comes naturally to you. In fact, that’s what the professionals are there for!

If you’re struggling to think of ways to get in control of your money before you finish work, it’s a good idea to get in touch with an accountant or consultant. Working together with a finance advisor will allow you to follow a personalised plan that’s been planned to a tee. An accountant will be help you improve your weak areas and build on existing strengths too.

Overview

As you approach your last few years at work, taking control of your money is crucial. Financial security not only means you’ll have a more comfortable retirement, but it could define your ability to provide for your family in the future too.