Managing your money in the transition to retirement

It’s exciting to be heading into retirement however it is also a time of major financial upheaval.

No matter how carefully you’ve prepared, there will be unexpected expenses and possibly other times when you find yourself with surplus cash.

Many people will still be working part-time or earning income from the occasional consultancy or contract while at the same time planning travel, upgrading a boat or hobby equipment and fixing up the house.

And because it is a time of transition, it can be very hard to plan your finances.

If you are gradually reducing your workload you may not know whether you will owe or receive tax at the end of the financial year, or by what amount.

You need to have cash available, but you also want to earn the best return on your money.

Term deposits make sense at this stage of life. You can invest for periods ranging between 30 days and five years so you don’t have to lock up your funds for a long time and you know exactly when they will be available.

If you don’t need the cash when the deposit matures, you can visit Cashwerkz and research current market rates to reinvest for a term that suits you.

The interest rate is higher than in an everyday savings account and it’s one area of your finances where your capital is preserved and the income known.

Transition to retirement is a time when you need flexibility because you will be making some important decisions and TDs provide the security of knowing your cash is safe and earning a high return.

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