Retirement usually means a change in working hours or more and with it, a change in earnings. Some persons use retirement as a long awaited opportunity to open their own business in the field that interests them the most. Others use it to pursue other things that interest them, with their primary goal being learning.
Your goals for this period of your life will affect the spending and savings choices which you make. If you find yourself having to work, there are many other things to consider as well, like health. If you work part time, in some countries you may be exempt from paying income tax. Be sure to talk to a knowledgeable person and plan your earning around what gives you the most benefits.
At retirement, some persons may be tempted to consider a reverse mortgage because these generally guarantee you a set figure each month. Before signing the papers to do this, make sure this is the best option for you. Ask around. If you are getting the reverse mortgage because you need money for a specific purpose, for example, to do home repairs or for medical treatment, remember that some government agencies will give loans for things like this at reduced rates.
Reverse mortgage pros and cons – What is a reverse mortgage and how does it work?
Speak to a financial advisor. If possible, speak to more than one. If you have a nest egg, try not to withdraw more than 4% of it each year to provide for yourself and the wellbeing of loved ones. Using an approximate calculation, excluding interest, withdrawing 4% per year would leave you with enough money for 25 years (100%-your principal, divided by 4%-the amount you withdraw annually).
Pension Funds and Taxes https://upload.wikimedia.org/wikipedia/en/f/fa/Stacks_of_money.jpg
Some investments don’t attract any tax if the money is left invested for a certain period of time. Take this into consideration when deciding which funds to use first.