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You might not like to think about it often, but it’s a fundamental fact of life that you are very likely to grow old and pass away one day. For all that you probably don’t want to dwell on your mortality too much, you must think about the financial implications of living to a ripe old age. You have to prepare for the inevitable and that means you need to think things through.
Saving for Retirement
Ideally, you should start saving for retirement as soon as you get your first job. The longer you have to save up, the easier it will be to put together a significant lump sum to buy a pension scheme or simply live off the interest. Building up a portfolio of assets, including a range of investments such as property and shares, is also a good idea.
To work out how much you need to save, you should work backwards. Think about how much money you will need to live comfortably each year. Then work out how much you need to save in order to earn that from your interest rates, assets and any pension you might have. You should also factor your state pension into your sums.
Consider the Cost of Care
The cost of later life care is rising in the UK and is highly dependent on where you live and what your needs are. Again, this isn’t the kind of subject you want to dwell on but talking to your family about what your preferences are will really help. Equally, keeping hold of your assets for as long as possible – e.g., letting your house after you move into care – will certainly help to cover the costs.
Most older people want to stay in their homes and be independent for as long as possible. Home care services are usually quite flexible and may be part-funded by your local council. The best thing about home care services is that they will only come when you need them to – for example in the evening to prepare a meal or in the morning to help you up.
Preparing For Your Passing
How much does a funeral cost in the UK? Well, it depends on what you want but a basic funeral can still come in at over £2000. This is a lot of money to most people and when you are dealing with your grief, trying to put this kind of money together can quickly become stressful.
Most people leave money in their will to cover their funeral costs as well as instructions. This really helps those you are leaving behind to make decisions such as where to bury or cremate your body and they don’t need to worry about the cost.
While it might be tempting to bury your head in the sand, preparing and saving for later life is essential if you want to live to the fullest for as long as possible. Thinking about this now also gives you much longer to save slowly.