How your spending habits might change
It's no secret that we are generally living longer. The average time spent in retirement in the UK, is currently 22 to 25 years*. Whilst this means you’ll have more time to enjoy your retirement, it also means you’ll need to plan to ensure your money can last.
Things to take into account
Plan to ensure your money can last.
- Spending money on your home
If you’ve paid off your mortgage then your costs will be low. Consider how you’ll pay for upkeep on your home, including repairs, replacements, and improvements. If you’re renting, you need to factor this cost into your budget.
- Costs for your children and grandchildren
If your children are yet to fly the nest, plan on going into higher education, or want to buy a house, you may need to budget to support them. You might want to help your grandchildren too.
You may save money on transport costs, because you won’t be commuting. You may even be eligible for free or discounted public transport. These savings could be put towards other areas of your budget.
Remember to check out all the potential help and support you could be entitled to when you reach retirement or certain ages. For example, travel passes, reduced costs at leisure centres and help with your winter fuel bills.
Things you’ll need to plan more carefully once you've retired
Chances are, you’ll want to travel and take more holidays once you’re retired. What’s on your wish list, and will your budget stretch to cover these trips? It’s also worth factoring in travel insurance, which can be more expensive for over-65s.
- Heating and bills
Your utility bills could increase if you spend more time at home. Look into the Winter Fuel Payment - you could be eligible for some tax-free support to help towards your bills.
- Looking ahead to the long term
We’re living longer now than ever before. Careful planning for things like long-term care for you, your partner or your parents, will help you budget for your whole retirement.
The Money Advice Service have a budget calculator you can use to help you plan more effectively. You can also read our related articles to find out more about budgeting for your retirement.
* Based on data for England and Wales. Office for National Statistics, Nov 2014.