For most when stepping off the treadmill of work into a slower pace of retirement life, the biggest consideration is whether we will have enough money, to continue to enjoy life. It was no different for us but, almost two years on, we are still certain it was the best decision we ever made. (Apart from getting hitched of course 😂). But planning is they key.

There are probably five stages of planning:

Income
What are you planning to do with your extra leisure time
Outgoings
Setting the date
Budgeting for enjoying life at your own pace

Income 💷

Remember, unless you intend to find a part time job, your income is likely to be a reduction from your pay packet. There will be no more overtime payments, or bonuses, so it will be a finite amount coming in each month.

We badgered our Company Pension departments almost monthly for approximately six months prior to our departure, to obtain income quotations, until we were certain our income would be sufficient.

Future Plans 📆🗺

We made lists of what we wanted to do with all the additional time we would have together.

Buy a campervan for short trips around the UK and possibly longer trips around Europe
Buy cycles for a bit of exercise
Go to the cinema more
Go to the theatre more
Enjoy walks in the local countryside and seaside
Read more
Enjoy more live music events
Visit more of Britain’s historical places
Travel

Outgoings 💷

We then took a look at our outgoings to see if there were any we could reduce. We have always been good at keeping on top of bills and ensuring we’ve got the best deals, and not paying more for being loyal customers.

Use comparison websites when renewing insurances such as house or car. Don’t be afraid to call your current provider if you find a better deal, they will often match it.
Use cash to pay for shopping and purchases, for a short while, it can open your eyes to how much you are actually spending.
If you use credit cards, as we do, ensure you pay them off in full every month. If you can’t then you are probably overspending.
Transfer outstanding card debts to 0% interest cards and just make a monthly transfer, to free yourself quicker
Talk to your Tv & Broadband providers. Most will taylor your package to your usage. Ultimately reducing your bill as you aren’t paying for services you don’t use.
If you have a gym membership- do you use it? If not cancel it. If you think you might use it more, consider transferring to an off peak membership to use when everyone else is at work.
If you’re out of contract with your mobile, make sure you’re not still paying for the handset and consider sim only.
Indoors you can reduce bills by:

Turning the thermostat down a notch or two
Adjusting the timer as the seasons change
Changing to low energy bulbs
Plan meals to avoid food wastage and use leftovers
Consider supermarket own brands or a discounted supermarket, as we do – we save approximately £50 per week using a discounted supermarket. ( But we are a family of 9 )
Make full use of any loyalty schemes
Sell any unwanted, in good condition, items or clothes, to clear space and add a little to the coffers
Buy new items when you need them, not when you want them and search the web for the best prices and for discount coupons

Setting the date ⏳

A lot of Companies require three months notice of your intention to retire. It gives them time to prepare your figures, drawdown your lump sum, if you have one, and get all the paperwork signed.

Costing of Future Plans 💳

We set aside funds from our lump sum, to clear the remaining mortgage, to purchase the campervan, the cycles and enough for a deposit on a new car once the PCP on the existing one expired.
We discovered the local cinema have a showing once a week for adults only, at a cost of £3 a head, including a nice cup of tea and a biscuits. The films are usually three to six months after release, but it still a great way to enjoy the big screen, especially through the winter months and beats waiting for the DVDs
Becoming friends of the local theatres and an Amateur Dramatic Society, gives us discounts to lots of plays, musicals and bands.
Our final membership for this year is for Historic Royal Palaces. The one off joint fee of £80 gives us free access to six palaces for 15 months
We are lucky enough to live by the sea, but also have lots of countryside around us. We enjoy lots of seaside walks or strolls through the countryside till we hit the local pub.
We also enjoy lots of music, listening to local bands in the pubs around the town. Free entertainment, with just the cost of a pint or two.
Both having e-readers means we have a wealth of books at our fingertips. I have discovered lots of new authors by downloading books on offer at 99p. But if you don’t have an e-reader, you could join the local library, its free 👏👏
The only really large expense we have is travel. But by budgeting and putting some money away each month, and booking early to get the cheapest deals, we have managed a couple of overseas trips a year, together with several weekend/midweek breaks.

Its not about being frugal, more about being sensible. If you understand where your money goes and regularly revisit your bill providers and your spending habits, it is possible to continue to have a very happy, active life in retirement.

So if you’re teetering on the edge of that treadmill, uncertain whether to take the final step off to a slower, calmer pace of life try the five step plan and come join the retirement party.