Money saving can be a difficult task to embark upon, but is often essential to ensuring people can obtain the type of lifestyle they desire. This is of particular importance for people in retirement, some of whom may have given up on saving money or changing their financial habits. However, now could be the perfect time to enact such changes, particularly to ensure the costs associated with later life are amply covered.
She continued: “Is what you want now different from when you first established your savings goals and began to put money away?
“For example, when you retired, you may have planned to do a lot of travelling, but this may have been curtailed – and not just because of the pandemic, but because what people want changes when they’re older.
“If your goals change, then you will need to establish what it is that you actually want instead.”
But while achieving later life goals will be central for many Britons, ensuring essential needs are covered is also of equal importance.
This will involve having enough money for certain eventualities, such as needing additional support with day-to-day needs or more formal care.
To this end, Ms Hanifan explained: ‘You might want to have a bit more support, not just care, but generally around the house. For example, if you love your garden, you may wish to have a gardener provide some help once or twice a month.
“Really importantly, use this as a time to save and plan. And another important issue to consider is what would happen if you need formal care, without panicking yourself.
“Even if you don’t need to go into a care home, or need a carer, most people will need to have some sort of help in the home when they are older.
“Do your savings and assets stretch to that? You need to match your money to your goals. This is all about puzzle pieces and whether how they connect together.
“It’s all well and good to say you want to improve your finances, but improve them for what?
“Being aware and reminding yourself of these issues is key, and these matters have financial implications.”
But Ms Hanifan also expressed frustration with the current situation for those who are looking to save at this time.
With interest rates low, many people have been left with little place to turn, but there may still be options left on the table.
Ms Hanifan concluded: “The government have plugged for years that people should save for later life, but they’ve given them the worst saving regime you could possibly ever have!
“You do need to have some cash funds behind you, for emergencies for instance, but with the rest of your funds, look at how these are being invested, and use all of your allowances, such as ISAs, as these have tax benefits which are quite important.
“While looking for the best interest rates is usually a good objective, at the moment it seems it is hardly worth wasting your time.
“If you could spend an hour looking for the best interest rates, or an hour reviewing your financial objectives? I know which one I would choose.”