What to Consider When Stretching your Retirement Income

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18 Oct 2017
Saving for your retirement is pretty cut and dried, and really isn’t that difficult to get a grip on. If you have been putting away some of your salary since you were young, and investing money wisely, then you should have a sufficient nest egg to fall back on in retirement.

The problem is that many people underestimate how much they are going to spend during retirement, and their retirement income doesn’t quite cover their lifestyle. It can be terrifying seeing the money slowly drain out of your bank account when you know that you don’t have anything coming in to replace it. 

Luckily there are a lot of ways for you to stretch your retirement income to ensure that you are getting enough money to cover your needs. Here are some tips and tricks to use in order to stretch your retirement income as much as you can: 

 

Perform an analysis and formulate a plan

 

Having a well-thought-out plan for your retirement income is the first step in knowing exactly how much you have to spend when you get there. Doing a cash flow analysis will reveal how much you will be making in your retirement between your investments and your pension – it allows you to see if you will be making enough to cover the costs of your planned lifestyle. This also creates an opportunity for you to create a budget that you can closely follow to ensure that you don’t overspend. 

 

Save, save, save

 

While this may seem like an obvious point – you’d be surprised how many people leave it way too late to start saving. Saving should start in your 20s and 30s and this way you can save small amounts every month, however, if you have failed to save enough so far then you need to start saving larger amounts now. Put away as much as you possibly can to ensure that you have enough in the bank when you retire.

 

Look after your health

 

One of the most draining aspects on retirement income is medical bills. As we get older our bodies simply aren’t as strong as they once were and medical aid and insurance rates skyrocket. By starting to look after your health now, you can ensure lower insurance rates and less money spent on going to the doctor or dentist. Eat well, drink moderately, try to give up the cigarettes, and ensure you are getting plenty of exercise, and believe me – you’ll be thankful when you retire.

 

Part-time work or consulting

 

Just because you have retired, that doesn’t mean that you have to stop working completely. In fact, you have many years of experience that could be very useful for a company – so think about hiring out your services as a consultant. Working part-time is a great way to keep money coming in and to stretch your retirement income a little further. 

 

 

Swaps and senior discounts

 

Now, some retirees make it a matter of pride to avoid attending things like swaps – however it really is a great way to stretch your retirement income. Clothing, item, and food swaps are a perfect little barter system that could save you heaps of money. Also, make sure to take advantage of your pensioners discount. Ask stores if they have any scheme in place and what days you can get your discount – this could literally save you thousands of dollars a year. 

 

Downsize, rent out or move somewhere cheaper

 

You are probably going to be a lot less active in your retirement and seeing as your family no longer lives with you (in most cases), so it makes sense to either sell your house and downsize to a smaller place. Or you could move to a smaller place and rent out your house for a monthly retirement income. Another great investment idea is purchasing a property somewhere cheaper, in a popular tourist spot that you can rent out while you are still working to make extra money, and then move to when you retire. This allows you to live out your golden years somewhere warm and where the cost of living is lower – resulting in your retirement income stretching that much further. 

Calpe is a small town on Spain’s stunning Costa Blanca coastline and it is one of the most popular spots for Britons to purchase retirement property. With blue flag beaches, warm weather, azure oceans and decent housing prices – this comes as no surprise. 

If you are thinking about investing in property in Spain, then have a look at our collection of gorgeous villas in Calpe, all which will make a perfect retirement property. Contact us for more information on the Spanish property market or for advice when simply travelling to Spain.

 

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