Pension Planning Means there’s No Reason to Dread Retiring

Britain has become a youth obsessed society and because of this some people hold a stigma against reaching the age of retirement. A lot of people don’t look forward to the future because they worry about how well their pensions will support them and how they will be perceived by younger generations. Here’s why a few sensible financial decisions can make your retirement the next exciting step in your life.

Growing old, purposefully

There is a common misconception that a person’s retirement is an unproductive and insignificant time, in which the elderly are seen as dependent on others and stuck in the past. In the 1980s and 1990s this view may have been understandable as relatively few people saw particularly lengthy retirements; however, this couldn’t be further from the truth, due to being able to make much more of our pension plans and because we live in an ever aging society. In fact, between 2010 and 2030, the number of people over 65 years of age is expected to grow by half and the amount of those aged over 85 is to set double.

Far from being a redundant part of your life, your retirement is the perfect time to holiday to places you haven’t seen before, spend more time with family, take up new hobbies or do voluntary or charity work. The extra free time you’ll find yourself with after your retire really does mean that the world is your oyster, so it’s important to think carefully about getting the most from your pension to make sure you can live comfortably, whilst doing all the other things you want to.

ISAs and Annuity

Once you’ve worked out how much you’ll have to live off with your various existing pension plans you should shop around to see if any companies can offer you deals which will let you make more of this money.

There are loads of services and schemes that could save you money but if you are having trouble figuring out which is best for you, it’s a good idea to speak to an expert. A pension annuity, for example, turns your savings into a regular monthly income, however, annuity rates vary considerably, and you need to find a provider that can enhance your investments by a reasonable amount. Alternatively, you might rather put your savings (as cash or stocks and shares) into an ISA (Individual Savings Account) which provides the benefit of tax free interest.

Whatever scheme you opt for, rates will vary depending on the provider you go with, so it’s worth investing some time into trying to find the best deal. Several websites compile lots of information regarding the various options open to you at retirement age, which can help make the process a little bit more straight forward.Britain has become a youth obsessed society and because of this some people hold a stigma against reaching the age of retirement. A lot of people don’t look forward to the future because they worry about how well their pensions will support them and how they will be perceived by younger generations. Here’s why a few sensible financial decisions can make your retirement the next exciting step in your life.

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