Making your money work in retirement
Retirement brings new financial challenges. With the right planning, you can enjoy your retirement years without money worries.
Your retirement income typically comes from three sources: the state pension, workplace pension, and personal savings. Understanding what you'll receive is the first step in budgeting.
The full new state pension is worth over £10,000 per year. Check your National Insurance record to see what you'll receive.
List your essential expenses: housing, utilities, food, healthcare, and transport. Then add discretionary spending. Compare this to your guaranteed income to see where you stand.
Remember that some expenses may decrease (commuting costs) while others may increase (healthcare, hobbies).
When accessing your pension, consider your options carefully. An annuity provides guaranteed income. Drawdown gives you more flexibility but requires careful management.
Take time to understand the pros and cons of each option. Consider getting financial advice for significant pension decisions.
Use Delphina to see your retirement projections and plan your budget.