Phasing into retirement: 5 essential financial considerations

While phasing into retirement can offer you greater flexibility, it may make your finances more complex. Read on to find out more about five key considerations.

1. Calculate if you’ll need to supplement your income

While you might still earn a salary as you phase into retirement, if you’ve chosen to reduce your working hours or switch roles, it might not be enough to maintain your lifestyle.

If this is the case, you may opt to supplement your salary with income from other sources. For example, you might start to take an income from your pension or deplete your cash savings.

A financial plan can help you assess what income you need and whether there’s a gap to close.

Remember, money taken from your pension will usually be added to your other income when calculating your Income T