Planning for your retirement: How should it be done?

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When we’re in the prime of life, thinking about what the future holds might be put on the back burner, but at some point, we have to wonder what we do as soon as retirement appears on the horizon. We’re expected to retire from work for good as soon as we reach our mid-60’s, but saving as soon as possible is ideal.

If, for example, you don’t have the funds or financial knowhow to save for your retirement, what can you do when planning for old age? Here, we have a few handy tips for you in order to help ensure you have the means to pay for all the basics and more once you’re ready to call it a day at work:

Save a little each month

If, say, you have 20 years or so before you reach the legal retirement age where you become entitled to claim a state pension, then it’s not too late to start. Putting away as little as £5 or £10 each month can really stack up over several years; becoming something much bigger.

Claim what you’re entitled to

A no-brainer, but doing this will ensure that you won’t be left without something to live on. State pensions are there, as are discounts on heating bills during winter and even TV Licenses. Age UK for example has lots of useful information and resources on how to boost your income such as their benefits calculator.

Find the right pension product

This might sound hard, but it doesn’t take a lot. All you need to do is visit a site like My Pension Expert and compare the best deals – use of an annuity calculator is also a great way of getting a rundown on the level of income you could receive from your pension fund.  Annuities, private pensions and savings accounts are all good, but the first two are best for receiving regular installments.

Getting a good rate

To set one up, you need to purchase one now and ensure you get good value for money. In recent years, rates (which pay a percentage of the lump sum paid to an annuity provider) have fallen dramatically thanks to higher life expectancies among men and women. This means that getting value for money is vital. Something else you should take into account is any illnesses or long-term health conditions you may have. If you suffer from either, there’s a good chance that you’ll be paid a higher rate to help you pay for any additional medical costs.

Check for any dormant accounts

It’s not the most obvious thing to do, but there might be a little bit of money resting any accounts you may have forgotten about. Find out if you have them, whether there’s any money at all in them and, if there is, look into transferring those funds into your pension pot.

Save as soon as you can

Waiting until you feel you can save isn’t the worst decision you could make, but saving as soon as possible will give you more time to watch your pension pot grow. If you have no savings for retirement, it’s never too late to start if you have enough funds in a current account.

Retirement can be a time to do what you love. Discover inspiring stories of people doing just that.