A collaborative post, primarily for our readers in the UK
Pensions are a massive talking point in the
UK right now and many of us are wondering how we can generate enough capital to
fund our retirement. It’s certainly a tough question to answer, but one you
don’t want to ignore – and taking small steps every day can make a real
difference as the years roll by.
Today we’re looking at some little
economies you can work into your daily life and enjoy a bigger pension when
retirement comes around.
Make sure you’re entitled to the full
state pension
While it’s not a good idea to rely on the
state pension alone, you still want to be sure you’re entitled to it, in full,
when the time comes. The state pension is currently £115.95 a week, and it
will rise to £144-£155 after April 2021
, which is hardly a figure you want
to pass up.
To get the full state pension you need to
clock 30 years of national insurance payments, but your entitlement will be
slashed if you fall short.
Manage your pensions
While pensions become increasingly complex we have a range of
technologies at our fingertips to make financial planning and management
easier. Your first task is to figure out how much retirement is going to cost
you – and you can do this by using an online retirement calculator, like this one from Retiready.
Once you have a figure in mind it’s time to
start getting your finances in order, and smartphones are emerging as a
top tool for building bigger pensions
. A range of apps give you control
over your finances at a fingertip, allowing you to track and improve the
performance of your pensions. This daily involvement with your retirement funds
gives you a stronger incentive to manage your finances and watch your savings
grow.
Make pensions, financial independence a family topic
It’s becoming increasingly common for 40-60 year olds in the UK to
financially support both their parents and children at the same time, so you
want to have conversations about your retirement planning early and often—and
include the whole family.
Many of us are starting families later in life, while our parents live
longer and the economy has made things difficult for everyone over the last
decade. So make finances a family topic, because three generations doing
everything they can to stay financially independent will make a huge
difference.
Consider working longer
Okay, this may not sound very appealing, but the best thing you can do
each day to boost your pension is work. In fact, five more years of work could boost your
retirement income by a third
, although you don’t necessarily have to
work full time.
Part time hours could bring in enough to
delay dipping into your pension funds and, if you’re a while away from
retirement, why not think about alternative sources of income? Many people work
online now so think about any digital skills you can use or learn to earn money
independently – just keep it all above board!
As pensions become a trickier topic for all
of us, the key to securing financial security in later life is early planning.
Now is the time to start thinking seriously about pensions and daily habits
like the ones we have covered today could help you enjoy a fuller life once you
retire.

Image credit is ELDR.com.


Disclaimer:  This is a sponsored post and predominately for my readers in the UK!




Have a wonderful Wednesday!

Pin It on Pinterest