Retirement is just around the corner if you are in your fifties and the odds are you are spending a lot of time thinking about when to stop working.
At least 600,000 British baby boomers are turning 65 years old each year and official statistics from the government suggest the country has more retired people than ever before.
That’s fine if you have marshalled your finances.
If you haven’t, you need to work out what you can spend and when you can stop working.
Here are some tips on how to do that:
Set a budget
You must know what you will spend each month and how much you will have left for treats.
Don’t only look at the big numbers, because the small amounts that are frittered away every day add up to hundreds of pounds over a year. That spending includes buying from coffee shops, smoking, eating out and impulse purchases such as DVDs, books and sweets.
Get a grip on pension freedoms
You need to know how to make the most of your retirement savings with pension freedoms.
Working out the best way to take cash from a pension without paying too much tax is vital to maximising your savings.
You can get free financial advice from Pension Wise and the Money Advice Service.
If you have pensions worth £30,000 or more, this is compulsory before you take any cash from the funds.
Have a retirement plan
Think about where you will live and what you will do – holidays and hobbies can work out expensive.
Discuss this with your family and partner, because they might have different ideas to you. Consider if you really want to be on call as a baby-sitter or dog walker however smashing those kids or pets might be.
Age deadlines
These are need to know dates – such as your 50th birthday for pension freedoms, 60 years old for many public sector pensions to start paying and your state pension age.
State pension entitlement
Not everyone is equal under state pension rules, so ask for a forecast and confirmation of the first payment date.
If you plan to become an expat, the payment is frozen at the value of the initial amount in most countries – including popular Commonwealth destinations such as Australia, Canada, New Zealand and South Africa.
