How to organise your finances for Retirement

Nov 03

How to organise your finances for Retirement

While there has been less focus on the failure of British citizens to save in the wake of the recent economic recovery, there remains a considerable lack of proportion between national earnings and disposable income levels.

This means that households are still saving less money than they should, creating an uncertain financial future that may ultimately end with them having inadequate state and private pension funds to cover the length of their retirement. This is clearly something that citizens should be keen to avoid, although this will be easier said than done if another global recession takes hold at some point in 2016.

If you want to enjoy your retirement, you need the funds to do what you want. Taking out a home mortgage to cover retirement-related expenses may seem like a good idea, but it can lead to more problems because your monthly financial obligations will increase. To avoid an added bill, consider taking out a reverse mortgage that pays you, instead. Under the terms of a reverse loan, you will be given money to spend as you see fit out of the equity in your home. As long as you stay in the home, the full balance will not be owed back to the lender. If you are wondering how much you can borrow, that will depend on the results produced by a reverse-loan calculator app. The tool will use federal guidelines and the value of your property to figure out how much money you can borrow.

How to organise your finances prior to retirement 

With this in mind, it has never been more pressing for citizens to take charge of their finances and organise them efficiently in time for their retirement. Consider the following steps towards achieving this: –

List all of your retirement Accounts

Before anything else, it is crucial that you make a detailed list of every single retirement or pension account that your own. This may be an employer provided plan such as a private workplace pension or a state alternative, while you may have other investment accounts and portfolios that accrue interest on an annual basis. Either way, this will provide a broad base of data that enables to calculate dividends and your total retirement fund. In addition to this, it also offers you an opportunity to combine some accounts for higher interest repayments, while married couples can also combine their pension plans to optimise returns.

Make a Plan for Managing and Distributing Assets 

When most couples retire, they are left with a large family home and similar assets that no longer suit their purpose. While many choose to hang on to their home and use this as the basis for their future estate, however, you prefer to sell the property for a profit and invest in a smaller home with lower maintenance costs. Quick house sale firms such as Quick Move Now can help you to achieve a rapid and profitable sale, although the key things is that you identify your assets and create a plan for managing, optimising and distributing them accordingly.

Create an Income plan and Time line 

When you retire, it is important to note that not all income sources and dividends start at the same time. You can adopt a proactive approach and take control of this, however, by creating an informed and intelligent plan that staggers your repayments while creating a consistent stream of income throughout your retirement. The best way to achieve this is through the creation of an income time line, which extends the detail of your account information creates a visual representation of how and when you wish to receive your retirement funds.