Post-retirement

Managing your income

It can be sensible to track your expenses and adjust your spending to ensure you don’t outlive your savings. Don’t forget that everyday expenses, such as food, housing, and healthcare, tend to rise with inflation.

To make sure you’re receiving all the income you are entitled to, check if you’re eligible for government benefits like the State Pension or Pension Credit. Our team can help you assess whether you are accessing all the benefits you are entitled to.

If money becomes tight, you could look for ways to cut household expenses, such as looking at a smaller home or switching your bills to make sure you are on the best possible tariffs.

Smaller homes often mean reduced mortgage or rental payments, insurance, and utility bills. A smaller home can bring fewer surprise costs and unexpected repair bills.

If you are considering moving, plan a budget for moving expenses, as these can add up.

As well as thinking about where you might live, there are other ways you could reduce your bills such as:

• make sure you take advantage of discounts or exemptions based on age, income, or living alone. For example, you can get reduced Council Tax
• see if there are ways to make your home more energy efficient to reduce your utilities bills
• review and cancel unused streaming services, magazines, or memberships
• reduce your travel costs - you may qualify for a free bus pass or discounted rail travel

If you own your own home, you might even want to consider taking cash from a pension and using this to put towards paying off any large expenses, such as the remainder of your mortgage. This could bring down your outgoings in retirement.

Taking cash from a pension can mean your monthly payments are lower, so make sure this doesn't hamper your ability to meet your essentials in retirement.

Plan for long term care: Planning for long-term care costs is crucial to ensure financial stability in later years. Long-term care can be expensive, whether it's home care, assisted living, or nursing home care. Understanding the costs in your area helps you prepare.

Check for government support. In the UK, local councils may provide financial assistance based on a care needs and financial assessment. You could consider insurance options. Some policies cover long-term care expenses, helping to reduce out-of-pocket costs.

If you are worried about care costs, Age UK has some good information to help you – Paying for care | Working out the costs of elderly care | Age UK

Setting up a Power of Attorney

Setting up a power of attorney in the UK allows you to appoint someone to make decisions on your behalf if you're unable to do so. Here’s how to do it:

1. Choose your attorney – Select someone you trust to manage your affairs.
2. Decide on the type – There are two types:
   1. Health and welfare: Covers medical care and daily living decisions.
   2. Property and financial affairs: Covers managing money, bills, and assets.
3. Complete the forms – Fill out the official forms from the UK government.
4. Register with the Office of the Public Guardian – This process takes around 8 to 10 weeks.
5. Pay the fee – The standard registration fee is £82, though reductions may apply.

You can find detailed guidance on the official UK government website here.

Granting someone power of attorney is a significant legal decision that comes with important implications. Your attorney will have the authority to make decisions on your behalf. The person you choose must act in your best interests and follow legal guidelines. If you grant a lasting power of attorney (LPA), your attorney may take over decision-making if you lose mental capacity. You can cancel a power of attorney if you still have mental capacity, but once you lose capacity, it becomes harder to change.

Attorneys must follow strict rules, and concerns about their actions can be reported to the Office of the Public Guardian.

Setting up a will

Setting up a will ensures your assets are distributed according to your wishes after your passing. Here’s how to do it:

1. List your assets – Identify your property, savings, investments, and possessions.
2. Choose your beneficiaries – Decide who will inherit your assets.
3. Appoint an executor – Select someone responsible for carrying out your will.
4. Name guardians for children – If you have dependents under 18, specify their guardians.
5. Write your will – You can do this yourself or seek professional assistance.
6. Sign and witness it properly – Your will must be signed and witnessed by two people to be legally valid.
7. Store it safely – Keep it in a secure place and inform your executor where it is.

Head to GOV.UK for official guidance on wills.

There are several ways to get help writing a will:

• Use a solicitor – A solicitor can ensure your will is legally sound, especially if your estate is complex. You can find guidance on choosing a solicitor here.
• Free or low-cost services – Some charities and financial organizations offer free or affordable will-writing services. MoneySavingExpert has a useful guide on low-cost will-writing options.
• Citizens Advice – They provide information on making a will and whether you need professional help. You can check their advice here.
• Online will-writing services – Several platforms allow you to create a will online, often at a lower cost than traditional solicitors.