Approaching Retirement Issue 3 – Heavy months and 'lite' months
Posted Sep 11 2008 3:37pm
I'm pleased to bring you the third in a series of articles by UK
Financial Adviser, Helen Kanolik, about the financial issues facing
retirees. If you require any further information, her contact
details are included at the end of the article. Helen's new website will be ready soon but, until it is, you can read more about her here: http://www.ecademy.com/account.php?id=170537
Most of us don’t spend exactly the same
amount every month of the year. There
are some expenses that crop up regularly, and some are one-offs. Sometimes we save up for the heavy months
from money left over in light spending months.
When you are working, especially if you are
getting a salary which is the same every month, you don’t have much control
over when money goes into your current account.
You will probably find that some of your
retirement income is regular, for example from pensions, and you can’t control
it. But some of your income may not need
to be regular, and you can usually control income from savings and
Let’s say that you need £1,000 every month
to cover things like Council Tax, food and drink, going out, buying clothes,
and presents. Every three months, you
need money for the telephone, electricity and gas bills, and four times a year
you spend money on big birthday presents for your nearest and dearest. So really, it’s more like £1,500 most months.