How to budget during retirement

As many of us know, retirement is something that is talked about a lot by those who have yet to experience it. It is idealised as a point in life where you have worked to be able to go on four holidays a year and say goodbye to the responsibilities that have plagued you for years. Studies suggest that the ideal age for retirement is 57; 32% of respondents planned to quit the working world at this age. This dream isn’t always realistic, though. Research estimates that the British public will need at least £260,000 to retire without money issues. For those between 45 and 54 years old, £71, 240 is the average. This leaves a gap of £188,760 – not exactly pocket change.

Budgeting money in certain areas would allow for the extra cash to be used on some of the things that we imagine when thinking about our retirement years. Here, we suggest some good ways to budget and save your money during your retirement.

Do a clear out your cupboards

Do you have a loft or a garage that you’re scared to go into because of the sheer amount of clutter in there? Whether it’s old equipment or new purchases, as a nation we don’t like to get rid. In fact, over half of the UK’s adults claim to have between 1 and 10 items hanging in their wardrobe which have never been worn. However, one man’s junk is another man’s treasure, right? Therefore, clear out any unnecessary clutter you may have acquired over the years.

Getting rid of your unwanted stuff will create more space for you to chill out in retirement. Not only that, it can help to provide extra funds to go towards your retirement pot. It means that you’ll be increasing your income, and you won’t even have to make too many cuts from your lifestyle.

Grow your own produce

Growing your own produce can serve as a new hobby as well as a cheap source of food. We all know that eating fruit and vegetables is good for you because they’re full of vitamins, minerals and nutrients. If your garden is big enough, you should use vegetable seeds and create a vegetable plot. This can include cabbages, lettuce, onions, sweetcorn, leeks and the likes. Have you ever stopped and thought about how much money you can save if you grow your own veg?

Don’t have a large garden? Don’t worry. A patio garden can also grow smaller produce, including mange tout, radish and French beans. You should also look into companion planting. For example, grow swiss chard in the same space as onions, beetroot and cabbages and you’ll make the most of your space while also deterring pests.

Make sure you do your research and pick the produce that is most cost efficient, for example tomatoes. They don’t require much space to grow and you can even place these on balconies. Usually, they take 12 weeks before they are ready for harvest and each plant can create fresh produce daily for up to six years. Based on a shopper buying one box of tomatoes per week, this can help you save £52 each year.

If you have tomatoes, you’ve got to have potatoes as well – these are another money saver. The average Brit eats 429g of potatoes every week and the average four-pack costs £1 in a supermarket. However, for a pack of five seeds, you can grow up to 45 potatoes for as little as £1.50.

It’s not just tomatoes and potatoes that are cheap to grow and a successful vegetable patch could make you great savings. 

Make your budget match your lifestyle

We’re not saying stop having fun, it’s no use retiring just to sit and be bored. However, it’s important that you plan properly and adjust your lifestyle to suit your budget. We all like the occasional blow out — whether that’s on a holiday, fine dining or on new items. However, it’s crucial to live within your means. If you were used to eating out every other night when you were in employment, chances are you won’t be able to once you’ve left the workplace. Equally, you shouldn’t cut it out altogether. Simply adjust the frequency you do so, and you’ll still be able to have that luxury that you long for.

Have your priorities straight

Budgeting during retirement doesn’t mean eliminating the things that you enjoy doing. However, it is important to set yourself priorities. Decide what it is that you really want in your life and what are just added bonuses. Doing this can help you to prioritise your money, while ensuring you don’t miss out on what you really want in your life.

 

These are just a few ways to keep a bit of money in your pocket once you’ve retired. Of course, there are many other opportunities for you to make the most of your retirement, but by focusing on these points, you’ll be well on your way to enjoying your relaxing time after finishing work for good.