Financial resolutions can be difficult to maintain, but making these realistic and achievable is often considered key. This is particularly prudent for retirees who are looking at managing their finances as costs continue to soar.
With this in mind, Shona Lowe, financial planning expert at abrdn, looked at one way to “master your money” in 2023.
The new year will present the perfect opportunity for millions of people to get on top of their taxes.
This is applicable to individuals who are already retired, or those approaching state pension age.
Some may even be looking to retire in 2023 after working past the state retirement age.
READ MORE: State pension triple lock has ‘high price tag’ in 2023
Market turbulence partly attributable to the ongoing conflict in Ukraine has meant many pension funds have taken a tumble.
This may be nerve-wracking for those who are eagerly watching their pension and hoping for a good return.
Ms Lowe considered an approach for individuals currently in this position.
She continued: “If you’ve seen your pension drop in value and you have other savings and investments, consider reducing how much you take from your pension or delaying starting taking anything.
“Instead use cash savings or other sources of income to give the fund a chance to recover.”
Any decisions made about a pension have the potential to be life-changing.
Many people will be planning their income to last them decades into retirement, and so the matter must be carefully considered.
As a result, Ms Lowe recommends speaking to a financial adviser for personalised, expert assistance.
These professionals can help to ensure a person’s retirement income is as tax-efficient as possible.