Six Ways to Ruin your Retirement

Retirement happens to some whilst they are people completely unprepared. Certainly when we are young we don’t want to think about retirement, but rather get on with their lives and live for today.

This attitude can make some of us sleep-walk right up to the day we collect our old age pension. Retirement should in many ways be the golden years of our lives where we can sit back relax and do all those things we wanted to do when working and unable to find the time.

Below are six ways to ruin a retirement:

One: Not to make financial provision for retirement when we were younger. If one has to rely on a state pension only, it will lead to a lean retirement and only basic survival without any luxuries. It is important during one’s working life to subscribe to a decent pension plan.

Two: If you’re living in a very large house it would be silly not to downgrade. Downgrading will free up valuable cash and give you a home you can cope with into old age. A large garden may be great now but a burden later when you’re no longer able to keep on top of it. Unused rooms cost unnecessary cash during the winter months to heat. A small home will be more cozy and cost effective.

Three: Retiring too early, you may find your cash has to stretch much further than you think. We are living longer and you may live much longer than you expected putting a strain on any saving you may have. If you’re considering retiring early make sure you have funds to see you well into your eighties.

Four: Failing to plan for long term care. It is possible either you or your partner will need to go into a care home during retirement. Care homes do not come cheap, and can make a large hole in one’s finances.  

Five: Do not over spend keep strictly within your budget. Living beyond one’s means will consign you to poverty perhaps for years.

Six: Failing to plan how to spend one’s time in retirement. It is vital to have a plan on how to use your new leisure time. If cash is short you might want to work part-time. If you don’t intend to work again you’ll need a hobby or interest to expand in order to keep you motivated. Retirement is not the end and in many way a new beginning a time to enjoy life to the full.