PLANNING
Why are pensions
suddenly interesting?
Retirement is now something you can genuinely look forward to.
With much longer life expectancy and good health
typically extending into our twilight years, retirement
can be viewed as an extended holiday, but it requires
careful budgeting to prevent it from becoming an
ordeal.
We can now access our pension pots from age 55. If
you take this route, you need to plan for an average
of 25 years of retirement if you are a man and nearly
27 years if you are a woman.
That’s a long period of spending
money without earning any.
The state pension will provide £6,092 a year (£115.95
a week), which, after covering your fixed costs leaves
you with around £9 a day for food and drink, clothes,
travel, maintenance, entertainment…
Almost everyone agrees that it’s going to be a real
struggle, so what can you do about it?
Recent changes have provided a series of incentives to
take more of an interest in saving up for this “big
holiday” and planning ahead can make the difference
between a brilliant retirement and a battle for survival.
Key points
Employers and the government can no
longer afford to fund generous pensions
People are living considerably longer,
requiring more money in retirement
New rules demand more involvement from
the individual to take control of their
pension
This is your chance to increase your
income in retirement
The good news is creating a retirement plan is not as hard as it
sounds and requires little time. Read on.
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