You probably read a lot of advice on how to save for retirement, but what isn't talked about as often is how to actually spend your retirement. According to reports, UK citizens need to save between £260,000 and £445,000 for retirement over the course of their lives, depending on whether they're renting or not.
Looking at that amount, should you invest in anything, save it for your family, or take that round the world trip you've always wanted? There are several options you can choose from, so here are the best ways to spend your retirement!
Take A Round The World Trip
You've never quite had the time or money to do all the travelling you would have liked in your youth; you had work all the time, the kids kept you busy and were hard to wrangle, and it just never seemed like the right time. But now, you've got nothing but time, no obligations, and money that's burning a hole in your wallet. So why not make that round the world trip you've been dreaming of?
A lot of retirement age couples opt for a cruise for this purpose, because it's the easy way out - everything is taken care of and paid for (you don't even need to bring money!) and you get to see all the important parts and then go back to the ship when you're done. If you're not feeling one of the stops, just skip it!
Set Up A Trust
It offers us peace of mind knowing that our children and loved ones are taken care of, regardless of what happens to us and beyond the time when we won't be around anymore. Have you considered setting up a trust for your children or grandchildren? It can be a fund for university expenses, wedding expenses, or just a general trust they can access at a certain point in time, in order to provide some aid when you are no longer here to help them out. Sure, it's not as fun as taking a cruise, but it can do more for your inner peace.
Downsize And Invest
Once all the kids have left the nest, the old family home can feel very big; there's just a lot of empty space that is wasted - and that can be a bit depressing - and in addition, it's difficult to maintain, especially for a person with decreasing energy and mobility. It can be hard to let go, but selling the family home and downsizing can open up some exciting opportunities for you.
You can choose to keep the home and rent it out, you can sell, or you can opt to release equity from your house and buy a smaller property to live on, using the rest of the money to buy a second property, invest in other endeavours, start a small business, etc. This move can make sense financially and be an opportunity for a new project that can fill your time in a fulfilling way, instead of cleaning a dusty old house. Age UK has some helpful information on equity release.
Get A Summer Home
Once they reach retirement age, a lot of people become so-called "snowbirds" - people who essentially migrate to warmer climates for the winter. And if you can afford it, why not? A lot of UK citizens choose to purchase a second home - usually in a warmer European country - either to enjoy during summer holidays, or to seek refuge in when the cold hits hard back home.
It can be a worthwhile investment, because if you're not using it year-round, you can have renters in the meantime, or even use it as an Airbnb to maximise its financial potential. Do be aware of the different tax implications of buying and selling property overseas. Gov.uk can help with further information.
Get Involved In Hobbies
Has there ever been something you've always wanted to do, but just never found the time for? Perhaps it's pottery, or water colour painting, or maybe you've always wanted to learn to tango. Are water sports more your thing? Who says you can't take up a class right now? It's never too late to do the things you are interested in, and now is the time for you to spoil yourself rotten. Especially for hobbies that are expensive or otherwise require specialised equipment, this can be the ideal time to try them out. Start your collection of rare and expensive stamps right now!
As you will have been able to see, there are lots of ways to make the most of your retirement and make sure you are spending the money you worked so hard for in a fulfilling way.