Average life expectancies are getting longer, which means most of us will enjoy considerable retirements. While this is great for quality of life, it will put more strain on our bank balances. If you’re nearing retirement age, here are six ways women over fifty can achieve financial fitness before your retire.
Fitness
Set achievable goals – nobody ran a marathon on their first job, so why should financial planning be any different?
Start is by taking stock of your current financial situation – savings, loans, cards, debts, income and outgoings. If you feel you need to make some changes to save more money, start with achievable goals such as cutting down from a daily takeaway coffee to making it a weekly treat.
Be prepared for emergencies – in an ideal world, you should be working towards having a ‘rainy day’ fund, so that unexpected bills or costs do not put you into financial dire straits.
The ideal figure is three months’ salary, however if you’ve left it until you’re nearing retirement and are worried about putting a large lump sum away each month, just save what you can afford. The aim is not to leave you short of budget day-to-day because you are planning for the future.
Skills
Get familiar with your financial situation – ignorance is no excuse when it comes to financial fitness. Take the time to read through and understand all the financial products you currently have, from mortgages and loans to credit cards and insurance.
The greater the awareness of your financial situation, the easier you will find it to change providers or secure a cheaper deal, without compromising on your level of potential.
Finances
Look after your own needs – women are well known for putting others before themselves, whether that’s children, partners or parents. However, in order to be strong for those around you, you need to be in a solid financial position yourself.
Financial fitness in your fifties means a certain degree of selfishness. Don’t be afraid to put yourself first, particularly when it comes to saving for the future; 21% of women do not have any retirement savings, which is a worrying statistics. There’s no point making sure everyone around you is financially secure if it means you compromising your own financial fitness in your fifties.
Planning for life in retirement
Put your own plans in place for later life – if you have a partner, you may be attempted to rely on their retirement savings to sort yourself out later on, but you never know what is around the corner. Always make an independent plan so that you can stand on your own two financial feet.
Consult a financial advisor if you need support – turning to a finance expert isn’t a sign off weakness. If anything, it’s a sign of strength in knowing that you will be in a better position with financial support.
A qualified financial advisor will be able to help you do a full audit of your current monetary situation, and then recommend a strategy for maximising your retirement savings.
When you need to think about your financial plan, contact us to arrange your own financial review.
The Financial Conduct Authority does not regulate wills, taxation and trust advice.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
The value of investments can go down as well as up and you may not get back the amount invested.