With the minimum age to receive a state pension set to increase to 65 for women, coupled with increased life expectancies for UK residents, the need to plan effectively for your retirement has never been greater.
The government must continue to raise awareness about effective retirement planning for those under the age of 40. For those 40 and above, however, awareness needs to be turned into action.
Here are 4 great tips to get your mind thinking:
1. Investing in a pension early on can get you in the right frame of mind later on in life. Having budgeted for pension payments throughout your life, the habit will ensure that you don’t miss this money as much as you would otherwise. The dramatic effect of compound interest over the years will ensure you have an ample nest-egg to see you through your retired years comfortably.
2. Keep yourself up to date with the facts on a regular basis. The two biggest facts you need to know when planning your retirement are:
Your state pension entitlement – and when it becomes effective
3. Explore other options when it comes to retirement planning. The key to a successful and comfortable retirement is diversification. Look out for safe property investments, utilise your ISA and National Saving allowances, be proactive in managing your deposit accounts to get the best interest rates,
4. Take an active stance about your pension management. Ask questions of your planners. Become knowledgable about the jargon (to a certain extent) and you will find yourself a lot more willing to get involved.