Tips for a Better Retirement

Though UK pensions have not had favourable publicity over recent times they still remain an essential investment for retirement. 

The basis of putting money aside for your future needs still remains the only way to have a good quality of life during retirement, unless you are one of the lucky few to have more money than you need.

These tips will help you make the most of your pension.

·         Consider a stocks and shares ISA

Stocks and shares ISAs have some good tax advantages where retirement planning is concerned, and many have people friendly tax advantages too.  Many financial investment companies and advisors do not advocate putting all the money in one place, and due to the lack of tax infringements these make a good investment vehicle to run along side a pension plan.

 ·         Contributions 

In view of stocks and shares ISAs, it could well be prudent to split your contributions between your pension plan and another form of investment.  In terms of how much you should set aside, the simple answer is as much as you can afford.

Many pension plans allow you to contribute more into your pension fund if you can.  In terms of pensions, every penny counts.

 ·         Working beyond retirement

 Many of us are just as sound minded when we hit retirement as we were twenty years ago, so there is no reason not to work beyond it.  Not only does this give you a more favourable pension pot when you do retire, it also gives the stock market time to recover should a crash occur just before retirement. 

 It also helps you prepare for retirement at a more leisurely pace.

 ·         Start paying in for the pension

 The sooner you start paying into the pension scheme the better.  £20 pounds now counts for a lot more in thirty years time than £20 pounds in thirty years time.  The state pension is currently worth £10,000 per annum which means the quality of retirement based on the state pension alone will be at least a struggle. 

•           Seek Advice

 Pensions, like other investments should be considered.  Charging in blindly could result in your money not going as far as it should for when you retire.  Instead, by contacting a financial investment company to discuss options, or just to obtain general guidance if you do not wish to commit to anything at this stage, is a good prudent move.

Pensions have become a bit derided in the press but they are needed to make retirement a happier, easier time.  Through careful planning and choosing, the pension scheme you pick could make your money go further and make your retirement sweeter.