How to keep up with the savings in retirement age and how to make the most out of your money?
“Retirement has been a discovery of beauty for me. I have never had the time before to notice the beauty of my grandkids, my wife, the tree outside my very own front door. And the beauty of time itself” - Hartman Jule
Retirement can be an incredible journey of self-discovery, a time to do the things you might not have had time to do in the past because of time constraints or financial difficulties, and a time to make up for lost time with your nearest and dearest. It is also an opportunity to appreciate what you have accomplished through hard work and enjoying the savings you have made towards retirement during your work life.
If you are reading this, you have probably retired or are almost retiring, congratulations. So, you may be wondering what steps to take next. Saving during retirement is still a crucial step to living a comfortable lifestyle, as the cost-of-living increases, and you retire from your main source of income. According to a survey, the average cost of living for senior citizens who took part in the study was 2,170 a month, and £26,000 yearly. The Covid-19 pandemic has also had an impact across the board on savings which has meant that people have saved between 4% to 5% during retirement.
Tips on how to save in the senior years
- Save on Transport
The 60+ Oyster card is the perfect fit for you if you are over 60 and still not eligible for a freedom pass; you must also have your own or main residence in London. This oyster enables travellers to travel for free on buses, Tube, tram, DLR, London Overground and National Rail in London. Pass holders are also entitled to discounted travel on River services and Emirates Air Line. However, you will not get free travel transport outside of London. You will be eligible for a Freedom pass once you reach 65+ and will no longer be able to use the 60+ oyster card.
- Saving accounts
- Retirement is usually a time of leisure but continuing the saving process is still essential to make sure you have extra funds in your account, in case of an unexpected rainy day turning up, by depositing money into a saving account monthly regardless of what stage you are in life such as pre-retirement or retirement stage. You can use apps such as Intellisaving to track your saving and instant access accounts on one platform.
- Intellisaving believes that the best strategy to use when saving is the save first and spend later method by prioritising saving before spending on excursions and other expenditures; this can look something like the example below:
Payday = Step 1: Apply saving strategy first - Step 2 Pay the essentials such as bills, Step 3 Spend within your means.
- Avoid Overspending
Retirement can be a time to kick back and relax for the most part, but that does not mean that you should go spending everything all at once; avoid overspending by using apps such as Intellisaving, which have a personal summary portfolio for you to view how much you have deposited into your saving accounts, and how much return you have received in the form of interest from banks each month. The platform also allows you to compare the best interest rates in the market, making it easier to figure out whether you could be saving more each month or are already saving as much as you can.
- Be on the lookout for discounts on entertainment venues
The age progression life comes with several perks; senior citizens could be eligible for discounts on excursions such as museums, National Trust sites, cinemas, leisure centres and theme parks. You also could get free travel in Scotland, Wales, Northern Ireland and London from age 60. Senior Railcards are also available if you are as young as 60, which costs £30 per year and a third off train fees.
- Try to build an income from home
- We all know that life can present its set of challenges, such as the Covid-19 pandemic, which has brought its own set of problems turning many worlds upside down, however on the bright side, the pandemic has increased the number of jobs done from home; you could use this as an opportunity to increase your income by doing a remote, part-time job from home. This could be an option financial turmoil occurs in the future.
- Another available alternative for increasing income from home is for those with a spare room which is not in use to rent out a room out to others to earn extra income, which could earn you an additional £7,000 through a rent-a-room scheme.
- Look into switching bank accounts
- There are several banks and saving accounts to choose from. Sometimes when individuals have a saving account, they are not getting the best value for money; for instance, they could be getting better interest rates, but fear not thanks to technological advancements, apps such as Intellisaving allow you to compare the best interest rates across different accounts through their Market view section of the app. This feature can serve as a step in helping you decide if you could make more of your savings through better interest rates.
- Specsavers gives free eye tests for over 60s and discounts off glasses and lenses from £69 and above, including designer glasses.
- Boots Opticians offer those aged 60 and over who have an Advantage card, and on the More treats for over 60’s scheme 25% off glasses or prescription sunglasses and once a year can you get free hearing aids with Boots Hearing care.
They say, “life starts at 40”, but the truth is life starts the day you are born and every day after that is a luxury, but for life to be truly lived and enjoyed, one should prioritise the essential things in life such as enjoying times with loved ones, saving regardless of what stage they are of life, and making the most of life both before and during retirement. As shown in our tips section, there are many perks to help the transition from working life to retirement. The years of retirement can be beautifully lived and enjoyed, but it is also crucial to take caution on how money is spent; by applying the saving first spend later strategy. Intellisaving comes in handy to those saving as you are given strategic control to help you view, manage, track and compare accounts.