Money can be a stressful topic for many. It’s the last thing you want to be worried about in retirement

From investments and savings to pensions and daily expenses, it can be hard to know exactly how to keep on top of it all. In this article, we’ll be discussing how managing your money in retirement is done best.

Budgeting

Firstly, consider what your plans are for retirement. Perhaps you have activities you’d like to tick off your bucket list, you have plans to go travelling, or you’d like to spend time with your loved ones.

By asking yourself these questions, you can get a gauge of how much money you might need to comfortably afford your retirement lifestyle. This, in turn, can help you draw up a budget so you have enough money to complete the things you want to do as a retiree.

Part of the planning should include how long you want your money to last. Having a rough idea in mind can help you budget accordingly. Having your finances laid out this way can encourage self-control and prevent you from dipping into important funds that you’ll need to support yourself in the future.

Sources of finances

Part of managing your money in retirement can be identifying where your money is coming from. You’ll likely have more than one income source coming in. Like a private pension, state pension, and any investments you’ve made over the years.

You could also consider downsizing your property to access the cash or use equity release to unlock some of the money in your property while you still live there. This can be a good opportunity to fund any retirement activities you have planned.

Wills and insurance

Making a will is the only want to guarantee your money, possessions, and investments go to the right people. Draw up a list of your assets, work out how much everything is worth, and distribute accordingly.

Ensuring your will, estate and insurance policies are in order is incredibly important for retirement. While this may not affect you and your personal finances directly, it can help relieve any stress for your loved ones should anything happen to you.

Bank and savings accounts

You’ve probably opened many different bank and savings accounts over the years. It’s worth trying to go back through and access these where possible.

Once you’ve located these accounts, consider moving the cash into newer and better accounts that offer various benefits to their customers. Whether that’s high-interest savings accounts or switching offers, you could be making additional cash on your existing money.