Enjoying retirement isn’t just about looking after your health and wellbeing. Having the financial freedom to make the most of your time, pursue your interests and enjoy the lifestyle you want can be just as important. Here are some things to consider before and after you hit retirement.
How can I boost my wellbeing in later years?
Living well for longer is a priority for many of us. Wellbeing means different things to different people, but physical and mental health are often a big focus. Having the time and financial freedom to enjoy the things that matter to you can also play an important part. Here are some ways you could boost your wellbeing:
Stay connected – Later life can be a golden age when it comes to socialising with friends and family. More free time also means more freedom to join groups, take trips and support loved ones. Maintaining social connections can bring big health benefits too, helping to reduce the risk of depression, dementia and frailty as we get older.
Keep active – Exercise is important at every age but especially in our later years when it can help to prevent physical and mental decline. One survey found that around a quarter of people aged 50 to 65 reported feeling healthier and happy after taking part in exercise classes, group activities or team sports1. Keeping active can also help you build new social connections.
Find purpose – Giving back to your local community or supporting causes that make a difference to society can help to boost your wellbeing. According to a survey by the British Heart Foundation, 92% of volunteers said volunteering had helped their mental health while 80% thought it had supported their physical health2. Sharing your skills and volunteering your time can also bring more structure and purpose to your retirement.
And having a clear financial plan can give you greater freedom to spend your time and money on the people, experiences and causes that matter most to you.
Have I got enough money to enjoy my retirement?
Financial wellbeing can have a big impact on how confident and in control you feel about retirement. Knowing where your income will come from, how much you can afford to spend and how long your money needs to last can help you enjoy your later years with fewer financial worries.
With the cost of living and care fees increasing, it can be difficult to predict how much money you need to fund your retirement. According to Pensions UK3, a moderate retirement lifestyle costs £32,700 a year for one person and £45,400 for two people. However, one survey found that the happiest retirees have an average total monthly income of £1,7004, which is just over £20,000 a year.
There isn’t a single figure that guarantees a happy retirement. What you need will depend on the lifestyle you want, your circumstances and the things you want to spend your money on. For some, that could mean travelling and enjoying new experiences; for others, it could mean helping family, pursuing hobbies or simply having the freedom to choose how they spend their time.
Depending on when you retire, private and state pensions can help to plug the salary gap, providing you with the income and independence to pursue new interests and fund new adventures. Researchers found that 72% of people5 aged 55-plus get more happiness from experiences, such as holidays, days out and hobbies, rather than material possessions such as houses, cars and expensive art, for example.
How can I achieve financial stability in my later years?
Financial planning can become more complex as we get older. Your priorities may change, your income may come from several different sources and you may need to think about how to make your wealth last throughout retirement. One survey found that 50% of homeowners aged 55+ felt rising living costs were impacting their ability to keep up their desired lifestyle in retirement6.
This is where having a clear plan and strategy can make a difference. Setting realistic goals, understanding your income and outgoings, managing your investments and thinking carefully about when and how you draw your pension can all help you make the most of your money.
Taking advice can also help you understand the choices available to you and make informed decisions about your wealth. Your Finli Planner can help you look at your finances before and after retirement, giving you a clearer picture of how your money could support the lifestyle you want. They can also help you consider ways to manage and protect your wealth, including tax-efficient savings and drawdown strategies.
Ultimately, retirement wellbeing is about more than simply having enough money. It’s about having the confidence to know your finances are working towards the life you want to live.
With the right plan, strategy and advice, you can take greater control of your wealth and make confident decisions about your future – helping you to live the retirement you want, with the freedom to enjoy it.
The value of investments can go down as well as up, and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
