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The transition from saving to spending in retirement is a big one and it requires careful planning to ensure financial peace of mind.
We believe our partner Lifetime Retirement Income can help here. Have a read of Chelsea Devlin's article here: The shift from saving to spending in retirement
Or you can read article published in full below and tell us what you think in the comments section.
The shift from saving to spending in retirement
For much of our lives, we focus on building wealth - saving diligently, growing our nest eggs, and preparing for the future. But when that future arrives (i.e. when you retire) a new challenge emerges; the shift from saving to spending.
This might sound easy on paper – you finally get to enjoy the fruits of your labour! In reality, it requires a dramatic psychological and behavioural about-face, as well as the discipline and confidence to manage your money so it lasts as long as you do.
Why is it so challenging to spend in retirement?
1. Fear of running out
It’s common for retirees to worry about depleting their savings too quickly. With unknowns like inflation, market volatility, and unexpected expenses, spending can feel like a gamble.
2. A habit of saving
For many, saving isn’t just a financial habit—it’s deeply ingrained behaviour. Letting go of this mindset can be difficult and emotionally taxing.
3. Navigating complex financial decisions
Deciding how much to withdraw, when to adjust, and how to protect your funds over a 20+ year timeframe can become overwhelming, especially as cognitive abilities change over time.
Equip yourself with the right tools
The transition from saving to spending in retirement is big one and it requires careful planning to ensure financial peace of mind. As the saying goes: “We never plan to fail; we just fail to plan.”
To help you navigate this life milestone, financial expert Liz Koh has developed the Buckets of Money Retirement Planning Guide. This comprehensive resource provides practical advice to guide you through the uncertainties of retirement, from managing expenses to ensuring your savings last as long as you do. And it’s free!
The guide equips you with the knowledge and tools to create a solid financial plan for your retirement years, empowering you to spend confidently and enjoy life to the fullest.
Click here to access the guide and start building the foundation for your best retirement!
Embracing a new mindset: Confidence to spend
To truly enjoy retirement, it’s essential to move past the fear and embrace sustainable spending. This doesn’t mean throwing caution to the wind but rather using your savings effectively to provide a steady income.
Here’s how Lifetime Retirement Income can help:
Lifetime Retirement Income: The key to stress-free spending.
1. Regular payments
Lifetime Retirement Income provides a predictable income stream, as well as expert investment and longevity management of your capital, so you can confidently spend without worrying about depleting your savings too soon.
2. Inflation-resilient strategies
With investments designed to combat inflation, Lifetime ensures your retirement income retains its value over the years.
3. Protection for couples
Lifetime’s joint income solutions mean your partner remains financially secure, even if you pass away, providing peace of mind for both of you.
4. Simplicity in financial planning
With Lifetime’s approach, you don’t need to juggle complicated withdrawal strategies or investment decisions—everything is managed for you, leaving you free to focus on enjoying retirement.
Saver to spender: A smooth transition
Retirement should be a time of freedom and enjoyment, not anxiety about whether your money will last. With a product like Lifetime Retirement Income, specifically designed to address the challenges of life’s third act, you can confidently transition from saving to spending knowing your financial future is secure.
Don’t let fear hold you back—explore how Lifetime Retirement Income can help you make the most of your golden years.
Have you thought about Lifetime Retirement Income to look after your money in retirement?
They know that people spending in retirement require significantly different strategies to those who are saving for retirement. They manage retirees money a little differently to people who are saving for retirement. The reason for that is they have to make sure retirees savings last.
Click on the button below to ask a question or contact the Lifetime Retirement Income Team.
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