– The Retirement Planning Council of Ireland provides some money management tips for 2022
The Retirement Planning Council of Ireland (RPC) is advising retirees to get organised and start thinking about their finances this month. By establishing new saving and spending habits, retirees can avoid falling victim to common financial mistakes in 2022.
Make a plan
The average worker gets back 50 hours per week in retirement and according to the RPC, it is easier to spend money when you are not working. Establishing a plan will allow retirees to closely monitor income and outgoings to ensure they have a grasp of their financial position. With rising inflation, it is even more important to keep a close eye on your outgoings.
Course Leader for the Retirement Planning Council of Ireland and former Pensions Ombudsman Paul Kenny said: “It is useful to know what’s coming in, and when, what the likely expenditure is, and when it is likely to arise. That way, you can anticipate large outgoings (such as a tank of heating oil) and put some money aside regularly for those.”
“New retirees should budget for miscellaneous spending each month, including coffees, lunches, books and clothes. It is also a good idea to use cash during the first weeks of retirement – as it feels like real spending – instead of tapping a bank card, where the charge might not be taken from your account for 2-3 working days. This is recommended to measure and control spending. However, this advice might not be so easy to follow during the pandemic, as most traders prefer contactless payment, or at least payment by card instead of cash.”
File a tax return
According to Paul, one of the first steps to take is to file a tax return. PAYE tax payers often don’t make regular tax returns and may miss out on the allowances and credits they are entitled to.
“First off – and this doesn’t just apply to retirees – make a tax return. People on PAYE often don’t feel the need to make regular returns, but it is a useful way of ensuring that you get all your entitlements, such as age allowance, relief on medical expenses, and even flat-rate allowances that apply to different professions. Revenue can also look back over four years, to see if there are things you missed out on previously.”
Spread out payments
The not-for-profit organisation is also advising retirees to look at spreading out payments over a period rather than being met with lump sum payments.
“Many companies, such as motor and home insurers, will allow payments to be spread over most of the year, in some cases without any extra charge. TV licence fees can also be paid by monthly instalments if you haven’t yet qualified for the Household Benefits package.”
The RPC also notes the importance of shopping around with different service providers to get the best deals.
“Retirees should look to shop around and be open to switching service providers in order to save money. Bonkers.ie is a free and impartial service, where you can compare charges for gas and electricity, broadband, phone and TV providers, banking services and insurances such as life, health and serious illness cover. Although interest rates on savings are very low indeed at present, you can compare banks and savings accounts on sites such as itsyourmoney.ie.”
Ask for discounts
“Older people should also be aware of discounts that are available in retirement. Many retailers offer discounts to older people, usually on specified days of the week. Senior discounts are also available from some theatres and cinemas. Some gyms offer reduced membership prices for daytime hours, when other members are at work. Every trader values the “Grey Euro” – make the most of it!”
Issued by Heneghan on behalf of Retirement Planning Council of Ireland
(01) 660 7395
About the Retirement Planning Council of Ireland
The Retirement Planning Council was established in 1974 as a not-for-profit organisation. It is an independent body, with a voluntary board of directors. The Retirement Planning Council aims to be the leading body of resource that helps people manage the transition from work into retirement.
About Paul Kenny
Paul Kenny spent more than 34 years in the pensions industry before being appointed as Ireland’s first Pensions Ombudsman in 2003. He retired from that position in May 2016. Paul was a founder Fellow of the Irish Institute of Pensions Management, and a Director for ten years of the Retirement Planning Council of Ireland and its Chairman for three years. He has extensive international experience writing and lecturing on pensions and related matters and holds a Level 7 Certificate in Training and Continuing Education from NUI Maynooth.