Importance of saving
You’ve worked hard all of your life – so why start saving again now?
I’m retiring – why is saving still so important?
It may seem like a contradiction in terms, but it’s still a good idea to be putting some money away after you retire. The difference now, is that you’re unlikely to have as many opportunities for generating more income or releasing capital, so a pot of savings could help.
The rainy day
As you get older there are still likely to be things that crop up from time to time: boiler repairs; unexpected maintenance for the car; or repairs to a property as it gets older. So a rainy day fund is important.
Your health will become a priority in your later years. Unfortunately, our levels of health aren’t guaranteed and, unless you have a very comprehensive medical insurance policy in place, it may pay dividends to have savings set aside – just in case you need (or want) prompt private treatment.
As well as budgeting with a regular income, it also makes sense to plan to have some spare savings that could help fund a lifestyle you’d like. Perhaps treating yourselves occasionally with a meal out, a trip away, or a celebration with family and friends.
If you have grandchildren you’d like to help out financially, a regular savings plan could be a very good idea – and there are financial products designed specifically for this purpose.
Read more about the types of savings products you can use, and things to think about before you make a commitment to a regular savings plan in retirement.