As you approach retirement age, it’s a great idea to start planning for retirement. A good starting point is to review all of your finances to ensure that you have a clear idea of how you can enjoy the lifestyle that you would like. As you approach retirement age, it’s a great idea to start planning for retirement. A good starting point is to review all of your finances to ensure that you have a clear idea of how you can enjoy the lifestyle that you would like.
Here are 5 areas that provide a good checklist when planning for retirement.
Addressing any debt
If you have any debt, whether it be credit cards, house payments, bills or any other debts you should really look to dealing with these and creating a payback plan that is manageable. Try to get rid of these debts before your income is reduced in retirement. Look at how much you need to spend over the next few years in order to be debt free by the time you retire.
Claiming the New State Pension
If you have at least 10 years National Insurance contributions and are either a man born on or after 6 April 1951 or a woman born on or after 6 April 1953 you will be able to claim the new state pension when you have reached your State Pension Age. This works out at £164.35 per week, but will also depend on your NI record.
Using your Pension Pot
If over the years you have saved into a pension scheme during your working life, you should start to consider what you will do with this money in your retirement. This is separate to your State Pension, provided by the government. There is usually a minimum pension age of 55 years, but this may vary depending on your pension fund. You can find more information here
Trace any old pensions you may have
It is likely that you will have more than one pension if you have worked for a number of employees over the years. It is important to trace back any pension schemes that you have paid into over your working life to make sure that you are claiming everything that you are entitled to in your retirement. There is a Pensions Tracing Service that may be able to assist you in finding out any pension schemes that you may have paid into over the years.
Work out your likely retirement income
Once you have looked at your state pension allowance and pension pot and taken into account any debts you may have, you will be in a good position to then work out how much you are likely to have in retirement. It is never too soon to review your pension provisions and needs.
If you are concerned or would like some independent pension advice, call us on 01608 651608 or fill in our enquiry form. Our team of independent financial advisors are on hand to answer any questions you may have around retirement planning and can assist you with advice.