Posted on: 18 April, 2019

How to deal with the transition to a fixed income

Amongst all of the positives that retirement brings, it also involves the transition from a full-time wage to a fixed income. Whilst this knowledge is reassuring for many who are entering this stage of life, it can be hard to know how to make the most of your pension – and ensure you’re living well. It’s more important than ever to create a budget and monitor your spending, but with the correct guidance, you’ll be able to live a normal life without having to compromise on the things you love.


Pay a visit to the Citizen’s Advice Bureau

If you’re approaching retirement, make sure to speak to someone at the Citizen’s Advice Bureau. You may well discover that you’re entitled to benefits you hadn’t considered – and they’ll give you professional advice that can help you with your budgeting. You’ll also be able to ask about your rights to healthcare and personal family arrangements. By being organised and ensuring that you’re informed well in advance, you’ll be ensuring that you’re not spending money where you don’t need to right from the start – and you may even gain money you didn’t know you were entitled to.


Do a little research

Take some time to have a look at some online comparison sites. Here, you’ll be able to compare costs for insurance and your utilities – and see whether you’re paying more than you need to be. Transferring to cheaper suppliers, if necessary, will save you large amounts of money in the long term. Be sure to also apply this method wherever you can – have a look at different supermarket sites to see where you can purchase the best deals, and if you’re looking to embark on a holiday, try booking your flights six months in advance. It’s also a good idea to find out when your local supermarket marks down their products – and ensure you take advantage of this.


Create a budget

Budgets are so important in ensuring that you’re living within your means – so take some time to write down your income and expenses. Prioritise your fixed payments, including utilities and bills, and then note down your secondary payments, which may comprise of subscriptions or your monthly haircut. Once you have a total of your monthly expenses, you can then grasp an idea of your disposable income, which is your leftover money that you can either save or spend. If you’re struggling to create a budget on your own, try enlisting the help of the Citizen’s Advice Bureau website. It’s recommended that when you’re retired, you live up to 25% below your means. This means that you’ll have enough money to put aside for a rainy day.


Turn your hobby into a business

Leaving full-time work to retire doesn’t mean you have to stop making money. If you’re a passionate writer or knitter, or talented at creating your own hand-made crafts, don’t hesitate to start generating profit from doing what you love – even if you’re trading just once per week. You can go at your own pace, and be completely in charge of everything you create.


Living on a pension doesn’t have to be limiting or stressful. If you’re taking the correct advice and watching your spending patterns carefully, you can do all the things you love and enjoy this new stage of life to the fullest.



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