Planning for retirement generally means a little bit of financial thrift. By putting aside cash that you could be spending now, you’ll be providing yourself with a means to enjoy the years after you give up work.
How many British citizens live under stress and austerity in the UK?
In the November 2022 Autumn Statement, the Chancellor, Jeremy Hunt, announced cuts to public spending totalling around £28 billion. According to various experts, including Sarah Marie Hall, a Professor of Human Geography at the University of Manchester, these austerity policies disproportionately impact the worst off in society – those who are most reliant on public services.
What are the best ways to secure a quality life when going on retirement
If you’re looking to save for retirement in this kind of environment, then there are a few steps you might take to not only provide yourself with financial security but to make sure that you’re spending money on the things that will provide your life with meaning.
Think about inflation
In the UK, inflation sits at about 8.7%. For certain items, like food, it’s at 18.3%. This kind of inflation will cut your savings in half in just a decade or so. As such, the savings and investments you make will need to not only break even but outpace inflation in the long term.
Release equity
You aren’t going to be able to make use of your house after you’ve died. So why not make use of some of the value tied up into those bricks and mortar? An equity release mortgage is one of the ways you might do this – or you might downsize to a bungalow.
Learn constantly
With new technologies and skills constantly being developed, and AI threatening to upend entire industries, it’s never been more important to build new skills and personal value. If you have more than a few decades until retirement, then you’ll probably need to switch careers – or at least adjust your approach – in the years to come.
Spend mindfully
Get into the habit of thinking about how your spending will generate value for you. Are you generating memories that will last a lifetime, or obtaining an asset that will hold its value, even outpacing inflation? Or are you just assuming a new liability that won’t serve you into retirement? Knowing the difference, and acting accordingly, can keep your finances in good health as you approach retirement.
Investing in health
There are certain kinds of exercise that, if practised regularly, will help you to stay in good shape right into your later years. These include weight training and regular walking, which will reduce your risk of injury, and keep your cardiovascular system in good shape. Your health is something that’s best looked after proactively. Don’t wait for a problem to develop: develop healthy habits now.