Take a little time to reassess your financial position and consider whether you’re happy with your lifestyle. Depending on whether you want to maintain or improve your current standard of living, you can decide whether your savings are still in the right place or whether you want them to work a bit harder for you. After all, you have the rest of your retirement to enjoy.
Some financial issues you might want to consider include:
- Ensuring your savings and investments are tax-efficient
- Reviewing the risk profile of your investments
- Budgeting for the cost of long-term care.
The National Audit Office believes that 3.2 million pensioners are paying more tax than they need to
Ensure your savings and investments are tax-efficient
The National Audit Office believes that 3.2 million pensioners are paying more tax than they need to*, because they're not checking their tax coding or not using their maximum tax allowance. After assessing your taxes read our Five ways to be tax savvy.
Review the risk profile of your investments
When most people first retire, their spending increases as they enjoy some of life’s luxuries. And why shouldn't you enjoy that round-the-world cruise you've always promised yourself? However, occasional treats aside, make sure that you can maintain the level at which you're spending. If you've purchased an annuity with your pension, your income from it may be fixed.
It's generally considered wise to take a more cautious approach to investing when you're retired. For example, you may want to move money from high-risk investment products to something more secure like a cash ISA which has the added bonus that it's free from any personal liability to income and capital gains tax.
Budget for the cost of long-term care
Even if you're in good health, it's worth budgeting for the possible future cost of long-term care. The cost of care varies vastly, depending on your condition and location. A place in a nursing home in the UK costs an average of £36,000 a year**, but in the south-east of England in particular that figure is likely to be considerably higher, so find out what your options are.
Check if you qualify for advice
If you have £50,000 or more in savings and investments, you may be eligible for HSBC Premier Financial Advice. See the full eligibility criteria.
If you don't qualify for HSBC Premier Financial Advice or if you'd rather not pay for advice, see other ways we can help.
*Our opening hours are Monday to Friday 8am to 9pm and 9:30am to 7pm on Saturday. Calls may be monitored or recorded.
Eligibility requirements
HSBC Premier Financial Advice is available to UK residents who have £50,000 or more in Savings and Investments and who are at least 18 years old at the time of the initial consultation.
You'll also need to have an HSBC Current Account or Savings Account for us to be able to deduct your fee. We can accept payment from a first direct Current or Savings Account too.
To find out more:
- See our HSBC Premier Financial Advice pages or;
- Call us on 0800 328 1298 to book an initial no-obligation consultation with an adviser. Lines are open Monday to Friday 8am to 9pm and 9:30am to 7pm on Saturday. (Textphone: 18001 0800 028 0126).
If you don't qualify for HSBC Premier Financial Advice, or if you'd prefer not to pay for advice, see other ways we can help.
If you are not a UK resident, see our HSBC Expat service.
- *Dealing with the Tax Obligations of Older People, The National Audit Office (October 2009).
- **'Long-term care: get the best deal now', Telegraph.co.uk (July 2010).
Please be aware that the value of tax benefits will depend on individual circumstances and tax rules can change. If you are in any doubt, please seek professional advice.
