When most people think about retirement, they think of long idle days spent watching daytime TV, waiting for each day to end and on to the next. This is far from the reality of what many retirees do with the time that they have on their hands once they choose to give up a career. The label that comes with retirement is outdated in many cases as many people find a new calling in life and do not follow the stereotypical lifestyle. 

The current State Pension age in the UK is 65 years* which the government is likely to increase again to tackle the costs of an aging population. This is thanks to people being in better physical health, further into their later years as a result of advancing healthcare. This has led to retirement being shorter than what it once was, and people must make the most of it. 

There are an infinite amount of options available when people take their retirement. 

Retirement allows for: 

• Travelling
• Home improvements
• Relocating
• Starting a business venture
• Volunteering or working
• Spending time with family and friends
• Finding a new sport or hobby
• Improving health or fitness 

People who are retired or are coming to the end of their working lives, often have the most experience and knowledge from working in the industry or business for many years. Retirement gives them a great opportunity to teach others what they have gained, through voluntary work or starting their own business venture.

How you can save or make money during retirement

1. Create a budget

By creating a budget with your expected income and estimated spending, it will provide control over your situation and changes can easily be made to adapt to situations or to predict spending in the future.2. Boost your pension

If you haven’t retired yet, you could increase the contributions to your pension to maximise the benefit later. This is especially important if your employer will also partly or fully match your contributions.

3. Review the performance of your savings and investments

Ensure that your money is working as hard as possible for you by investing sensibly and checking the rates of other accounts to maximise the interest that you can earn.

4. Consider if your home is a source of income

One possible option to free up some money, is by using equity release. This involves taking out a loan which will be paid later depending on the circumstance; such as if your home is sold, if you move into care or when you die. Alternatively, another option that is less imposing could be to have a lodger or rent out spare rooms in your home if they are no longer required.

5. Work during your retirement

Just because you’ve decided to retire, doesn’t mean you are no longer able to work. Using the skills and experience you have gained to teach others may be a great option to keep you busy and boost income. Discover some alternative ways you can earn some extra cash with our article on how to make money in retirement.

*Office of National Statistics