Posts Tagged ‘ retirement ’

Saving Money In Retirement

11/05/2012
By
Saving Money In Retirement

A lot of bad news has been coming for current and future pensioners, increasing Britons’ anxiety about how we will fund our retirement. Between falling annuity rates, “granny tax” grabs, and the news we will have to work longer and longer before we can get a state pension, many might have a gloomy feeling about retiring. However, while nothing beats regular life-long savings as a way to make sure you can retire comfortably, there are other things you can do to maximise your pension income from the state and make your state pension last a little longer. The first thing to do is to make sure you are getting all that you are owed when it comes to retirement benefits. Each year there are millions of pounds left unclaimed that pensioners across the UK had the right to get, but didn’t claim. For example, you might be able to...

Read more »

Could Living a Long and Healthy Life Leave You Without Money in Retirement?

24/12/2011
By
retirement

Will I have a long retirement? Should I live longer than average will I have enough money to support myself in retirement? Am I saving enough for retirement? These questions are key when you’re deciding how much money to save for retirement in order to live comfortably and have enough money for your entire lifespan. Obviously, no one knows how long their life will be, although it’s possible to make an educated guess. The most important thing about life expectancy is to save enough money before you retire so that you have enough money to support yourself for the entire time you’re retired. After all, it could be 30 or 40 years. Retirement Plans There are a variety of considerations when working at making a retirement plan, but life expectancy is an enormous factor. People used to think that they’d be lucky to live twenty years after retirement. Today,...

Read more »

How Much You Should Be Saving for Retirement

15/12/2011
By
Retirement

While many pension experts will give you ‘rules of thumb’ to save for retirement, the truth is that the kind of pension pot you will need is completely dependent upon your individual circumstances. Planning There are, however, some basic steps that you can take to start planning how much you should be saving. The most important step in planning how much to save is to calculate how much you will need in income when you retire. You should keep careful track of your expenditures over a few months time if you do not already do so, and review your outgoings. Consider the expenses that will remain the same when you retire as well as the expenses that will have changed. For example, when you retire you may have paid off your mortgage, but may have extra expenses for travel or healthcare. Then consider the income that you will have...

Read more »

The Power Of Compounded Interest

08/11/2011
By
compound interest

Someone once said that the greatest power in the world is the power of compounded interest. This is the interest that is put on top of the principal so that the interest then starts earning interest. Through compounding your money is able to grow much faster. If you want to become financially free then this is your greatest weapon. Young people often put off starting a retirement account. They think that they won’t need to start until they are 30 or 40. But this may be the biggest mistake you can make. Why? Because the best time to start investing for your retirement is NOW. Now the question is how can you make use of the power of compounded interest? You can do this by putting your money in vehicles that can give you good interest rates. One such vehicle is the stock market. You do not have to...

Read more »

How can I improve my chances of getting a good annuity deal in the current climate?

25/10/2011
By
current climate

Retirees in the UK have been dealt some heavy blows recently. With state pension age set to rise, shrinking company zzz, and fallen annuity rates likely to fall further still, it can seem like a tough world for many of those reaching retirement age, especially if you are looking for a comfortable retirement income. For the purpose of converting a pension fund into an income on retirement, many of us will choose the option of purchasing an annuity. When you purchase an annuity, in return for a premium drawn from your pension fund you’ll receive a regular income for the rest of your life, or for a previously agreed fixed period of time, usually up to ten years. The Bank of England recently announced a further round of quantitative easing which is likely to have the double effect of shrinking company pension funds and a further reduction in annuity...

Read more »

Four Scenarios for Pension Buyouts

29/06/2011
By
pension

When companies are looking to downsize but would rather not lay off workers, they often offer a corporate pension buy out (for companies in the private sector) or civil pension buyouts (for those in the governmental sector). Buyouts typically do not offer as much money as early retirement options, but they can still be invaluable to those who aren’t close to retirement. You can often receive annual pension payment buy outs or a lump sum. While lump sums can be rolled over into an IRA (and thus, are not usually taxed), regular payments are typically subject to fees. No matter which option you choose, there are benefits to accepting a buyout, rather than waiting around if your company’s future is uncertain. 1) Eliminate debt. Although it may not seem fun to use your pension buyout to get rid of back bills, it can be one of the best decisions...

Read more »

Sound Financial Planning for Your Post-Retirement Years

12/05/2011
By
Planning

America is busily preparing for the expected rise in retirees as more baby boomers exit the work force each year. As such, many of our financial gurus are gearing up to help educate and prepare this segment of our population towards maintaining financial solvency and independence for longer periods of retirement. Preparing your budget for your post work days is not as easy as it seems. Aside from the fact that you are reaching a more fragile age, you are also losing out on your work which means no more monthly income. This is precisely why many of our more mature population are dreading their retirement years, but financial sites like TotallyMoney.com explain that there is a way for retirees to side step becoming financially challenged in the future. The secret lies on how you prepare for it. Become Debt Free Almost all future retirees will have accumulated some...

Read more »