Planning your Retirement?
Approaching retirement and want to make sure you’re savvy with your money? Don’t blame you, millions of people look to how they can save money when it comes to planning for their retirement and seek to find out how to go about it and what they should be aware of, after all its your money you have worked hard for all these years so why not make it go a little further and make the most of your retirement. There are a few basic steps that you should take before you hit that retirement age such as deciding at what age you would like to retire. Nowadays your retirement age is not fixed in stone and you could retire and start claiming your workplace pension or private pension if you have one from as early as 55 years of age. Alternatively a lot of people like to work beyond the state retirement age which gives them a bigger pension when they do retire as well as the benefit of not having to pay National insurance which is a bonus if you are hoping to squirrel a little more away.
6 months before you are set to retire it is always a good idea to get a forecast of what your pension will be. You can find out your state pension amount on the Governments website and if you have workplace pension scheme then they will be able to give you the full lowdown and what you will get and how often it will be paid to you. You can also consolidate your pensions if you have more than one, although you do need to be aware of any exit penalties that may apply because you’ve made this change so always worth reading the small print or getting advice first. You could also think about how you want to receive your pension as an alternative to the traditional annuity you can opt for an Income drawdown which means that your pension stays invested whilst you are taking money from it which gives you the added benefit of an increased find growth.
The state pension allows you the chance to top up your pension which may be useful if you have missed out on any National Insurance Contributions in the past. You could also be entitled to top up your pension through Pension Credit which allows you to receive £155.60 at its current rate and £237.55 for couples. Other money-saving benefits you could claim once you are retired is things such as the Winter Fuel Allowance which could get you up to £300 a year. Cold weather payments, free bus pass and rail card and other benefits such as a free TV licence and reduced healthcare are also ways of cutting back any costs that you really don’t need to fork out for once you have retired.
The Governments Pension wise service can help you find out what you are entitled to and what steps you should take. There are also organisations such as The Citizens Advice Bureau who can offer free advice.
Plan well ahead and enjoy your new ‘partying’ days.