Everyone needs a retirement plan, but there isn’t necessarily just one good way to do it. Here are some tips to follow to help you plan effectively for your later years.
Start as early as possible
The key to a comfortable retirement is to save as much as you can, from the earliest possible date. This can be challenging, but if you’re employed, you can get into the habit of sacrificing some of your salary so that you don’t get used to seeing it in your bank account! Remember that workplace pensions usually attract employer contributions, which can grow to match your own. Make sure you know the terms and conditions of your workplace pension and then make use of it.
Get your NICs contributions up to date
It’s important that you maximise your National Insurance Contributions to ensure you’ll get the full state pension when you’re eligible for it. You can use the Government’s state pension calculator to find out when you’ll be able to claim it. If you want to put off claiming your state pension because you’re still working, called ‘deferring’ your pension, you can do this. The government has more information on how this works.
Know the details
You can usually start to claim a personal or workplace pension from age 55, but check this with your pension provider. Accountants Bristol, such as https://www.chippendaleandclark.com/accountants-near-me/bristol, can also review your pension plans and help you to assess whether you’re in the right position financially to make the most of retirement.
Check benefits
As you approach retirement, you should also check which benefits you might be entitled to, and if so, how they might affect your pension. For example, you might be eligible for universal credit, a carer’s allowance or housing benefit. The Citizens Advice Bureau can help you to establish which benefits you could be able to claim.
These steps will help you to be financially ready as you approach retirement, so you can feel financially secure as you reach the end of your career.