Retired? As important as savings and pensions are, how you spend your money during this time is just as important.
Living in too large a property
If you are still living in a large family home, then consider trading down to a smaller property, do you really need those extra bedrooms and bathrooms? By trading down you will save on gas, heating and electricity bills as well as general maintenance costs. Hopefully, you will also release cash equity on selling your property that can go towards your pension pot.
Eating out everyday
The average cost of eating out in the UK has now surpassed £20 per head. Eating out just once a day everyday will therefore cost you over £7300 per year! Add a partner or eat out more often and the costs really add up. If you enjoy eating out, take advantage of coupons or lunchtime specials to reduce your costs.
To retire stress free, we recommend if you can, removing debt from your life. Credit cards are only adding interest on everything you buy, therefor making purchases more expensive. If you can’t pay your credit card balance on purchases before the interest kicks in, then consider removing credit cards and store cards away from your life.
Buying a new car
Money wise, one of the worst things you could do to your finances on retirement, is to purchase a new car. Depreciation makes them one of the worst assets to own. Consider buying nearly new, when most of the depreciation has set in, this will save you thousands of pounds.
Buying a holiday home
Taking on a large commitment, like a holiday home with its added bills and maintenance is going to take out a large portion of your money. Add to this, currency volatility and the added stress of another home can make this a financial and emotional burden. Consider renting, the cost savings over a holiday term are more beneficial, plus, let some one else worry about the property, after all this is supposed to be your retirement!