Entering into retirement can be an exciting time – having the opportunity to do all the things you have always dreamt of is likely to be an appealing prospect.
However, with a long list of things to do, it can be all too tempting to take your eye off your finances, which in turn may lead to difficulties further down the line.
Keeping track of your spending from day one can protect your retirement income, while also giving you the freedom to pursue new things.
Take stock of your spending
Before retirement comes, it is important to take some time to review your spending habits.
Bear in mind that your income will be reduced when you finish work, so think carefully about where cutbacks can be made.
The transition to retirement can be difficult to adjust to, but knowing how you can tweak your spending before it is too late can help ease your mind.
Review your investments
If you have investments that you are planning to rely on when you retire, make sure they are still performing as well as they can.
Interest rates and other factors can change over time, so the money you invested all those decades ago might not be making the sort of returns you were hoping!
If you are looking to cash in your investments, look carefully at what you need to do to achieve this – you might need to give a notice period or incur a fee.
Look at your lifestyle
Once you retire, it is likely that your costs will increase, making it essential that you take a look at your lifestyle.
If you have certain hobbies that require annual membership – such as a golf club or gym – then make sure you factor these into your retirement plan.
There is also a chance that your general household expenses will rise – if you are spending more time at home then your electricity and water bills are likely to go up!
Use the opportunity to save while it is still possible to help set you up for a financially comfortable retirement.
Get important documents in order
Retirement is the perfect time to make sure all your important paperwork is in order and accessible.
This includes everything from your insurance policies to investments, deeds to your property to wills.
Providing contact names is also a good idea, as this will help keep all your files in order should you or your spouse ever need to make an enquiry.