It can be hard to get your head around your personal finances. For some of us just keeping on top of what’s in the bank is a constant worry. So when the time comes to retire, it would be nice to think that things would get a little bit simpler. However, with retirement comes a whole new set of challenges.
No longer working has more of an effect than just habit. It’s true that the first thing you notice is all the time in the day to fill, but it doesn’t end there. It’s a major change to lose that feeling of having a regular income and to continue managing your finances under that. Everything has to be recalibrated to consider a future that can feel uncertain, especially with regards to making money last. As such, you might find that this setup really is a completely different game to any previous money management.
Many people find that retirement brings with it a lower income. Pensions or annuities are great to have but often don’t match the rates of pay that work offers. As such it makes sense to adjust spending to suit these new circumstances. Some people find it easier to move house, thus freeing up the value of a larger property. Other people simply reconsider their monthly budgets, spending less on luxuries, or finding other ways to be thrifty.
It’s not all doom and gloom. You can find that being retired brings with it a whole range of concessions. You’d be mad not to take advantage of reduced costs on products and services, and it always pays to inquire about the possibility of special retirement rates even if they’d not advertised by the company in question.
One simple habit that can make things much easier is recording incoming funds and outgoing spending, so that whatever the source of income – annuity or otherwise – you keep track of how much you have to play with. It makes sense to keep on top of things in retirement even more than the other phases of your life, so that you can get down to relaxing with the rest of your time.
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