Saving You may have recently finished working, and are wondering about what lifestyle changes you should make. If so, it pays to be prepared. A great many of us after the age of 50 can look forward to 25 years or more active life, so planning for the future is essential.
One of the key concerns is likely to be money, and an intelligent first step is to complete a Budget Plan. This is a breakdown of your personal finances and covers possible savings you'll be able to make once you retire, possible extra outgoings when you retire, expected sources of income on retirement, and unavoidable outgoings and normal additional expenditure.
Your drop in income once you stop earning may be your prime concern, but the difference could be less than you'd feared. You will be saving on travel and other work-related expenses, as well as enjoying a reduction in tax. One tip is to try living on your retirement income say six months or so before you retire. Not only does this give you an idea of what you'll have to manage on, you'll be able to take swift action if you've underestimated how much you really need.
Assess your savings, including any lump sums, such as your pension and insurance policies. Decide how to maximise their value, for instance what means of investment would be most suitable. You should work out what your tax situation is likely to be and if you already have one, consult your accountant, stockbroker or other professional adviser.
Another suggestion is considering possible ways of boosting your retirement income. The three main options for providing you with extra money (apart from winning the lottery, which can't be guaranteed) are your home, work and skill at investing. Talking to other people about how they tackled the challenges and opportunities of retirement can be helpful. Alternatively, there are some excellent pre-retirement courses run by various organisations which offer advice and help.
No one need be an ostrich and bury their head in the sand, if all it takes is a little foresight and initiative to be a wise owl. A book which is full of essential advice is The Good Non Retirement Guide 2008, published by Kogan Page.
* Frances Kay is the editor of The Good Non Retirement Guide 2008, published by Kogan Page (www.koganpage.com), paperback, 544 pages, £16.99. Frances Kay's opinions are her own and for general information only. Always seek independent financial advice.