The cost of living crisis is something that is very real and affecting people of all ages. With inflation continuing to rise and energy prices soaring, people’s incomes have stalled while costs continue to spiral. However, those who are retired or are planning to retire are also being affected by the cost of living crisis, it isn’t just limited to the employed and unemployed.
With inflation continuing to put a strain on budgets, people are having to make cuts they usually wouldn’t, which means it can severely impact your retirement plans or any savings you have. With consumer goods and services being at their highest prices in over 40 years, the money you once had put away just isn’t stretching as far as it once did.
How Is The Cost Of Living Impacting Retirees?
If you’re already retired then you’re likely living off your investments or savings, meaning you’ll see regular payments from these as your source of income. However, with interest rates being at their lowest and people and businesses sitting on their money and holding back from spending, it means the money in the bank simply isn’t generating the same income it once did.
Many retirees are trying to cut their own spending back, however, there are a number of things you could be doing to help reduce the impact on your income. Keep reading below to find out more about what retirees can do to lessen the impact of the cost of living crisis.
What Should Retirees Be Doing To Lessen The Impact Of The Cost Of Living Crisis?
1. Property Investments
Property has been a solid investment for many years, even when the property market does dip, the rental market remains strong. Which means property investments are a great way to give your monthly and annual income a boost. With people still buying and selling homes at record rates, it’s a perfect time to invest in property or to off-load any property that isn’t generating the maximum amount of income for you. Buying to let properties are a great way to boost your income overall, you just need to be aware of the responsibilities that a landlord has.
2. Clever Investments
Whilst market conditions and inflations have affected budgets over the years, there are still many opportunities out there that could be worth investing your money in. From investing in businesses to shares, there are a lot of opportunities that could drive a great return on investment when made in a strategic way. Many people find shares a scary thing to handle, but when chosen carefully and with the right advice, they can prove beneficial and most shares values will generally exceed the typical level of inflation.
3. Financial Plans
Your financial plan isn’t something you should just be sitting on, it’s something that needs to be reviewed regularly. Now is the perfect time to adjust your financial plan to ensure you can drive additional returns from your investments. A review of your financial plan will help you to ensure you stay ahead of inflation. Professional financial planners will be able to provide advice on how you can better manage your money and how you can start generating more income from your investments.
How We Can Help You
If you’re currently retired or are planning on retiring soon and are worrying about the amount of money you have put away currently, then we can help. At The Lost Coin Financial Planning Ltd, we can help you formulate an ethical retirement plan to ensure you are getting the most from your investments and any money that you have sitting around in the bank. For more information or to book an appointment, please don’t hesitate to get in touch.
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