If you are worried you don’t have enough money to finance a comfortable retirement but find yourself within touching distance of giving up work, what can you do?
That’s a question that concerns millions of over 50s across the world.
However, there are still plenty of small things that add up to a big saving that the over 50s can do to improve their retirement finances.
If you are a British expat or someone who has worked in Britain and now lives elsewhere, consider switching that onshore pension fund into an offshore Qualifying Recognised Overseas Pension Schemes (QROPS).
In many cases, the QROPS offer more flexible investments across a wider range of markets, currencies and commodities coupled with tax effective benefits.
Cut spending
Next, look at the home you live in. If you and a partner are rattling around a big house you do not really need, consider trading down to something cheaper and more manageable.
Downsizing means cheaper maintenance and running costs all round – from property tax to heating.
Now the big ticket pension and home numbers are in hand, start trimming the lesser outgoings.
Most people who go through their bank and credit card statements like an auditor are shocked at the waste and the amount of saving they can make.
Look at the cars – if you have two or more, are they really needed or could you get away with one and save the cash you spend on fuel, tax and maintenance?
Analyse those statements and ruthlessly cut out the deadwood.
Look after the pennies
Check for:
- Subscriptions and direct payments of a few pounds to gyms, web sites and organisations that are long-forgotten or unused
- Pay TV is often siphons off cash with hundreds of channels showing sports, movies or repeats of programmes that are rarely watched
Divert money saved to paying down debts like personal loans, store cards or credit cards. Borrowing like this is expensive and unnecessary for people living within their means.
Once the debts are paid, look at tax reliefs and personal allowances that can boost retirement savings.
Like the saying says, look after those pennies and the pounds will look after themselves.
That’s certainly true for retirement savers who keep a tight check on their spending without strangling their enjoyment and forsaking the odd luxury.
Don’t stop living, but do remember every time you spend once over 50, it’s money that can’t be easily replaced for retirement savings.
