Prospering in your retirement
Unfortunately it has become an essential part of life to save for retirement. Especially when people are living longer. For many people in Britain living off £97.75 a week is a stark reality. Many people to look to working for 45 years which leaves around 30 years for retirement. Many people living into their nineties and evens hundred's as time progresses.
So how do you make sure that your prepared for those twlight years when you don't want to work or possibly not able to work due to ill health?
Key Points for your 20's
- Make sure you've cleared all of your debts
- Open an ISA
- Save money whatever you can afford
In your twenties retirement seems like a long way off, you start your first proper job with a salary, things like getting a mortgage for a house become more of a priority.
Make sure that your debts are paid, and credit card payments are kept up to date. Then start looking into putting away an amount you feel comfortable enough to part with.
Saving something is always better than saving nothing. It's also a great habit to get into.
Key Points for Your 30's
- Assess your outgoings and debts
- Join a company pension scheme
- Think about long term investment
At this point in your life you may be thinking about getting married and starting a family. You really need to look into paying off any debt you have; Do you have a family to think about; Are you saving for a rainy day; Are you looking to buy a house?
At this point you should be looking to saving for your future. Find out if your company can contribute to a pension fund on your behalf. Take note as to how this pension scheme is being run and where your money is going. The saying 'Shares outperform savings accounts in the long run'. Make sure your debts are cleared and budget is under control.
- Make sure you have started to save
- Keep building that ISA
- Your salary should be growing, put some into a pension
By this time you should already have some savings with the ISA. Still not to late to start a pension fund. At this point your earnings should be at their highest. Your debts should be under control. Your financial position should be strong enough to start putting money towards your future.
Imagine what your retirement is going to be like, and start planning than kind of income you would like in the future, by increasing your contributions and savings.
- Maximise your contributions
- Take away any risk in your pension plan
- Use Sipp for more control
- A very important time for retirement planning.
- If you have a retirement date, what is your income going to be?
- What is your retirement income option?
- By this time hopefully your pension will be a good one, if so consider using a Self Invested Personal Pension.
- Make sure debts like your mortgage are in order
- Will you make the decision of taking an annuity or will you take drawdown
See how your pension will produce cash in your retirement. Seek expert financial advice on things your not very sure about. You may also think you can work a bit longer, with the government putting the retirement age up to 60.
© 2011 Helen Bolam
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