A lot has happened over the last few years to UK Pensions, and some of the changes have been specifically targeted at women. They have been met with scepticism and hostility on the whole. On average most women require £709 per month just to survive in retirement which means that the state pension alone is not going to be enough to give you a good quality of life when you retire.
With this in mind and with one eye on the future, this post will give you some tips to build up your pension funds so you can look forward to a brighter retirement.
Start Yesterday
If you are in your thirties you should put 15% of your salary towards your pension. If you are in your fifties, this becomes 25% so starting now will pay dividends. One fairly recent pension change is that if you’re over 21 and earning more than £10,000 per year, your company will automatically enrol you into a pension scheme. It is worth assessing or getting a financial planner to assess the value of this pension and consider your options.
If you’re self-employed the rules are different so speak to a financial planner about starting a pension, or assessing your current one. There are lots of pension products and you may not be contributing to the right one for you.
Forget Starbucks
Research from Aviva claims that we spend around £18 per week on coffee, and other unnecessary treats such as chocolate. Why not put this £18 per week towards your pension? £20 per week saved could give you a pension fund in the region of £68,000 by the time you’re 68. Once you hit retirement you’ll have plenty of cash for coffee and chocolate.
Take Control of your Pension
When we reach our forties our earning power peaks. Instead of spending the bonus or pay rise on something we don’t really need, put some towards your pension. Where pensions are concerned it really is every little helps.
Assess your Pension Annually
Sixty one percent of us have never assessed our pension and this is sixty one percent too many. Every year get a financial planner to assess your pension pot and to ensure its performance is competitive. You don’t want to lose money.
You should also use the pension tracking service to keep track of your pensions for the same reason. When you speak to a financial planner ask he or she about consolidating pensions. It could be financially prudent.
Top-up your Pension Pot
If you are retiring in the future you are able to top up your pension, so you can claim the full £155.65 per week. This could be an option. Click here to see how it is done. Again good financial advice should be taken before doing so.
Consider Pension Claim Delay
If you delay taking your pension when you reach pension age you can boost your pension by 1% for every nine weeks you do not claim. In 2018 the pension age for women will be 65.
Consider your Options when you Reach Retirement
When you reach retirement you will probably find you can buy an annuity with your pension fund, or draw out lump sums. Various tax penalties may apply, and balancing your options to give you the best retirement can be tricky.
My award winning financial advice will ensure we make your retirement funds stretch as far as they can. This will give you the quality of life you deserve. Click here and complete the Call Back Service form and we will plan a good retirement for you together.
Source: Good Housekeeping
For more information, please contact Michele Carby at Holborn Asset Management on +971 50 618 6463 and on e-mail at [email protected]
