The three habits of happily retired people

Jul 16, 2020.

Retirement is an exciting prospect. Who doesn't want some new-found free time and money to spend? We need to plan ahead and save up to make sure we can truly enjoy it however we choose, so it's never too soon to start preparing.

Preparing for retirement doesn't have to be a daunting goal that you lose sleep over. It’s more about cultivating healthy habits –  little things that will make a big difference later on.



1. Budget planning

In order to secure a good income when you retire, you first need to take control of our finances. That means knowing exactly what you’re spending, ensuring that it’s less than you’re earning, and paying off any debts as quickly as you can afford to. If you’d like a little help in getting started, check out our Five Steps to Smart Budgeting or use a budget planning app. If you want to adjust your large budget items to the new conditions, we can recommend retirement planning.



2. Insure for the future

You don’t want your preparation to be undone by life’s emergencies, so it pays to have a safety net. To do that, you can make sure that everything you value is insured—that goes for expensive gadgets, valuable jewelry, your car, house, and even your health. And, to protect the people who value you, there’s even life insurance.



3. Smart investing

This is the habit that unlocks our future. First, it’s important to set up a rainy day fund for emergencies not covered by insurance. It’s also a good idea to put aside some money every month for big purchases, whether or not you have anything in mind. So when you do want to pay for that house deposit, car, or wedding, you'll have cash instantly without needing to rack up debt.


Now that you're on a firm financial footing, you’re in a position to set up a great pension fund. The sooner you do so, the less you'll have to pay each month, and the bigger your income will be when you retire. Then all that’s left is to sit back, relax and watch your money grow!


So, why not start now? There’ll never be a better time.


Retirement might look like a long way off, but it pays to have a plan in place – find out more about our savings and investments products here.