Planning for retirement may not be at the top of everyone’s agenda, but with a wealth of different pensions, savings and insurance options – striving for a comfortable nest egg is not out of reach. Pensions, State Pension, benefits and savings can seem complicated, but by sorting these out now, you can have an uncomplicated retirement in the future.
The funds you can receive for your retirement depends on when you decide to step back from work.
Some people stick with State Pension age, which is the earliest age you can receive State Pension from the Government.
However, others decide to delay the State Pension payments and work past this – there is no wrong choice.
State Pension age is currently 66 and is gradually increasing.
Read More: State Pension UK: This is how pensioners can boost their entitlement
By 2028 the Government are aiming to push State Pension age up to 67 for both men and women.
However, you can defer your State Pension payments if you wish, and continue to work past State Pension age.
State Pensions are not the only form of pension retirees are eligible for, as you may have a workplace or private pension too.
There are some things to bear in mind if deciding to retire, and these are your spending and the amount of income you need.
While you won’t have any work expenses but you might spend more time undertaking recreational activities or at home which could mean your household bills increase.
What are the two simple rules to remember when planning your retirement?
1. Work out your likely retirement income
Not only can working out your likely income from your retirement help you know when you can retire, but it can also push you to set goals for your pension payments.
You need to
Get a State Pension statement
Visit Gov.uk here and pop in some key details to discover your projected State Pension age and the amount you could receive once you do retire.
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Find any lost pensions
You can use the Government’s website here to find any previous employers or personal pension contact details to discover if you have some money nestled away somewhere.
Work out how much you could get from your workplace pension scheme
Every year you will be given a statement which shows how much pension you have accumulated so far and will project you might get when you retire.
Either look at your most recent statement or ask for a new one if it’s out of date.
Add up your savings and investments
More on this in the step below, but by accumulating the amount in your accounts you will have a much better picture of your retirement income.
Normal savings accounts, pensions, investment portfolios etc. can all contribute to your income after you stop working.
Consolidate your pensions
Having several different pensions can make it difficult to keep track of your money.
You can transfer old pensions into one, enabling you to know exactly how much money you have and potentially save some money.
Then, if you need to increase your payments, make plans or chat through your retirement options you can easily see the amount you already have saved.
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