The Money Saving Expert discussed retirement spending advice from a listener on his BBC podcast
Martin Lewis shared a tip about how to best spend your money(Image: ITV)
Martin Lewis has drawn attention to a crucial principle regarding retirement spending. During his BBC podcast, the financial guru spotlighted various suggestions from devoted listeners.
Key recommendations from his audience included beginning pension contributions early in one’s career and exercising caution when making financial decisions. Chris, aged 62, who has opted for early retirement, offered insight into spending habits. He encouraged people not to feel remorseful about relishing the funds they’ve worked hard to accumulate throughout their careers.
He said: “My policy is to enjoy now the money I’ve saved as in another 15 or 20 years, I might not be able to, or wish to enjoy the things or visit the places I want to now.”
In response to this perspective, Mr Lewis endorsed this strategy for managing retirement finances. He said: “I absolutely agree funnily enough. Money is about utility and happiness.”, reports the Liverpool Echo.
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“You need to plan and be prepared for the worst to happen, and have the contingencies available. But actually spending wisely, checking that you are doing things efficiently, not wasting money on things that don’t give you happiness or value, or at least getting the things that you need and the necessities, not joyful things, as cheaply as possible in a way that works, is what enables you to spend the money on the things that you want to, to give you a better life.”
Individuals in their early 60s who are gearing up for retirement might wish to verify when they’ll become entitled to their state pension. Whilst the state pension age is presently 66, it’s scheduled to climb from April 2026, progressively reaching 67 by April 2028.
Typically, 35 years of National Insurance contributions (NI) are necessary to obtain the full new state pension. The present full rate is £230.25 per week, climbing to £241.30 weekly from April this year, courtesy of the triple lock policy.
State pension payments are due to rise by 4.8 per cent in line with this policy. Anyone wishing to confirm how much state pension they’re forecast to collect can do so through a tool accessible on the Government website.
A minimum of 10 years of NI contributions is needed to qualify for any state pension. If there are any shortfalls in your NI record, you can voluntarily purchase contributions via the Government website.
Contributions can be acquired for up to six previous tax years. Nevertheless, this doesn’t guarantee a boost to your state pension entitlement, so it’s essential to verify this before making the payment.
Those approaching state pension age may also wish to investigate what additional benefits they’re eligible to claim. Pension Credit is accessible if you’re on a low income, with the typical claim worth £4,300 annually in extra support.
This benefit offers a weekly income supplement and opens the door to additional Government support. You’re also entitled to apply for Attendance Allowance if you have a disability or health condition that necessitates help from another person.
Additional benefits that may be accessible to you include the Winter Fuel Payment and Cold Weather Payments.