It’s the time of year (August) where the schools finish and parents are wondering how they are going to keep the little ones entertained for 6 weeks and grandparents maybe thinking how to spend more time with family. For those parents who are lucky enough to have their own parents retired, grandparents can be a valuable support network and of course children love to be spoilt by their grandparents.
But what if you’re a grandparent and you haven’t yet retired? Perhaps you are still working in a job you hate? You realise precious time is slipping away and the chances to spend more time with your grandchildren are running out?
Well now is the time to get control of your life and work out what you need to do to spend more time, not just with your grandchildren but doing the things you want to do before it is too late.
So where do you start? Well the first step is to think about and write down how you would like your life to be. If money was no issue what would your life look like? Next you need to work out a cost for that lifestyle. This gives you a starting point to compare what you need to what you already have. In order to work out what you have you need to add up all the income you are due to receive and when. This could be income such as state pension income (you can get a forecast here), final salary pension income, rent from BTL properties, dividends from shares, income from a business and dividends/interest from shares/savings. So now you know the likely ‘income’ you would receive if you wanted to retire but don’t forget you also have assets such as your house, your personal pensions, savings, investments and cars/boats.
You may find you already have more than you need or are very close, and if you reduced your spending expectations slightly you could retire today or very soon and start living the life you want to live. Spending time with those little grandchildren before they become too big and ugly!
Tips for generating the wealth you need to live the lifestyle you want and spend more time with family
- Downsize – if your own children have moved out then you may have excess rooms that you no longer need. You could downsize to a smaller property and free up valuable cash.
- Rent a room – alternatively if you love where you live and can’t bare to move then consider renting out a room. You can earn up to £7,500 per year tax free.
- Find all of your pensions and potentially consolidate them – you may not have looked at them for a long time and they could be worth more than you think. Consolidating them could make it easier for you to manage them but make sure you are not giving up valuable benefits. If you are not sure where to find a pension you can use the government’s pension tracing service here.
- Sell expensive cars – if you are a couple you probably only need one car really, especially if selling one meant having more money to do the things you love. Don’t forget the free bus pass from State Pension Age!
- Get your investment strategy sorted – decide on the level of risk you NEED to take and build a portfolio that is appropriate for that level of risk and gives you the balance of extra income and growth.
We help our clients day in day out to understand what they need to live the lifestyle they want, and for a lot of clients that means spending more time with the grandchildren and for others it can mean to travel the world. We use sophisticated financial planning software to forecast what you need and what you already have. You can see a video of how it works here. If you would like a free online demo please send us a message and we will be happy to arrange.
Don’t spend your later years full of regret that you didn’t get to do the things you wanted to do.