Are you approaching retirement? If so, you may be looking forward to a well-earned rest. But are you financially ready to give up work? Here are some simple steps you can take to make sure youre prepared for retirement.
If youre retiring in the near future, theres a good chance youve been paying into a pension pot for some time. Your pension should provide a nest-egg for your retirement so that you dont have to worry about bills and living costs. If youre not retiring soon, but you dont have a pension, it may be time to start contributing. Its never too early to plan for the future. Before you start putting money into a pension scheme, consider your options. Many employers offer incentives, so work out exactly what youll get for every payment you make.
Savings accounts come in handy during retirement, when your monthly income is likely to drop considerably. If you have money in a savings account, it may be worth shopping around. If youve been with the same bank or building society for a long time, there may be better rates available elsewhere. You can search online to compare rates within seconds.
Life insurance and critical illness cover
Life insurance is a means of protecting your family in the event of something happening to you. In most cases, you pay a monthly fee in return for a payout. If you dont already have life insurance, its wise to investigate policies. There are many different plans and providers out there, and the Internet enables you to make comparisons. If you have a pre-existing condition, this wont affect your ability to take out cover. There are myriad different providers offering insurance for those with pre-existing health problems. Visit claybrooke.org.uk/pre-existing-conditions/rheumatoid-arthritis-life-insurance/ for more information.
Critical illness cover is not the same as life insurance. This form of policy protects against life-threatening illnesses, such as cancer. It provides you with a lump sum in the event that you are diagnosed with one of the specified conditions. Nobody wants to think about being ill. But the reality is that there is a high chance of illness, especially in old age.
Financial advice and budgeting
As you approach retirement, its a good idea to seek professional advice about organising your finances. You should be aware of how much money you have and what kinds of policies you have in place to protect your financial future. Work out whats coming in versus whats going out each month. A financial adviser will also be able to recommend savings plans if you wish to set up a new account or switch banks. Take a look at https://www.moneyadviceservice.org.uk/en/articles/checklist-things-to-do-as-retirement-approaches for advice.
Are you retiring soon? If so, its wise to think about your finances and make sure youre prepared for the years ahead. Take stock of your accounts and make sure you have the relevant insurance plans in place. Seek advice from a financial adviser, and work out a budget. Planning ahead will enable you to enjoy your retirement without financial worries.