Social isolation can lead to risky financial decisions, according to new research. Findings show that excluded people seek money in precarious ways, in an attempt to rebuild social connections.
The study suggests that when we don’t feel connected to others, we try to buy satisfaction elsewhere in the form of materialistic objects.
It is imperative to take care of your finances properly, especially in later life. It is hoped by many to retire in your 60’s and when you do so, money will be in short supply. You will have lots of money going out but not as much coming in, so it’s crucial that you spend it wisely.
Now we’re not saying you shouldn’t enjoy yourself and live life to the full. You’ve worked all your life and now is the time to relax and enjoy time with your loved ones. What matters is that you control your finances and make safe choices.
Here are the top 4 financial decisions you should make in your 60’s:
1. Retire on schedule
Working an extra two years can boost your retirement tremendously, so it pays to have a set retirement date in mind.
By planning when you want to quit work, you can organise how much you need to save, you can work out what State Pension Plan you’ll get and you can act fast in order to boost your nest egg.
2. Plan your living arrangements
Where are you going to live when you retire? Have you paid off the mortgage on your home? Do you have children that are going to look after you, or are you going to move into nursing accommodation? Can you live in your existing property or do you need to downsize?
These are all the kind of questions which you need to ask yourself. It may be that you need to move to a cheaper area or a smaller house to release some equity as an income.
Now there are some equity schemes that give you a lump sum of money and don’t have to be repaid until you die but you really need to read the T’s and C’s properly, as the percentage fee will vary in accordance with your age.
3. Sort out your health care
We all like to think we’ve looked after ourselves and that we won’t need any healthcare but there will come a time when you need some sort of assistance or medication.
Depending on your income, you may be eligible for a medical card, which entitles you to the full range of medical services at no cost.
For more information about income supports for older people, click here.
4. Try to clear your debts
It can be extremely difficult to pay off your debts when you have a job and various expenditures but it can be even more problematic when you retire. As trying as it sounds, you really need to enter retirement with no debt.
If you do have any outstanding debts on credit cards or loans, now is the time to clear them. Easier said than done we know; especially if you have experienced bereavement, divorce or illness; however there are various resources that can help like MABS, The Money Advice and Budgeting Service, which is a free and confidential service for people with debt problems and money management problems. Age Action also runs a free information service for older people.
Perhaps you can consolidate all your debts into one payment via a debt consolidation company? Are you claiming all the benefits you’re entitled to? Do you have a hobby that you can make a bit of extra cash from?
What’s more, could you move bank accounts to take advantage of introductory bonuses? Examine your expenses, could you switch supermarkets to reduce your food bill? Many chains like Tesco offer points to Clubcard customers and money-off vouchers for petrol.
Perhaps you could swap expensive brands for supermarket’s own produce? Maybe it is time to switch utility providers to get the cheapest tariff? Have you set up direct debits for your bills? Many companies reduce your bills when paying via direct debit.
As you can see, there are various ways to cut your expenses and clear your debt. Try to enter your 60’s with as little debt as possible in order to enjoy a fruitful retirement.
So there you have the best 4 financial choices you should make in your senior years. All that’s left now is to do them!
– This article was provided by Cheselden, the UK’s leading independent authority on NHS Continuing Healthcare.
– See more at: https://seniorcare2017.wpengine.com/blog_information/14-02-12/The_4_Best_Financial_Decisions_You_Should_Make_in_Your_60%e2%80%99s.aspx#sthash.h7RtzAQD.dpuf
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