This is the million dollar question, but it is quite simple to answer because believe it or not the age old adage it’s never too early applies here. Retirement is something that people should be looking forward to, a time of freedom from work and the chance to relax and enjoy a pleasant life-style. Unfortunately this is not always the case and millions of people face an uncertain retirement. This is bad news when you consider that retirement these days can easily extend to between 20 and 30 years. Here are some rough guidelines.
TWENTIES
This is the age when you will be establishing your career and will probably have a steady income for the first time. You should pay heed and
* Clear student debts, it is never too early to pay off student loans.
* Avoid credit card and loan debt.
* Open an I.S.A – this tax-free method of saving will be crucial to your pension pot.
* Save – even a modest amount regularly will build up good habits
THIRTIES
This decade usually sees marriage, mortgage and children, but nonetheless it is a time to plan ahead.
* Reassess debt and outgoings in particular mortgage and credit card.
* Join your company pension scheme if this exists.
* Monitor any pension scheme you are part of, take an active interest and question decisions.
* Mortgage arrangements make sure they are suited to you and not restrictive.
FORTIES
* Stay on top of your debts
* Save as much as you can.
* I.S.A – continue to build this up.
* Dedicate earnings to your pension, if you receive bonuses and increases do not fritter them away, consolidate.
FIFTIES
This is undoubtedly the most important decade for pension planning. At some point you should be thinking of your retiral date to facilitate planning.
* Maximise your contributions
* Remove risk, now is the time to escape from arrangements with some jeopardy and to find safer cash investments.
* Consider a Self-Invested Pension Plan (SIPP) if you want a bigger say in your pension arrangements.
SIXTIES
The decade when most people retire and hopefully this will be a positive experience if you have followed the guidelines above. However you must still
Check your personal debt is in order, particularly mortgage debt.
Decide on an Annuity with the best rates and deal for your circumstances.
Consult an Independent Financial Advisor, take no chances with your pension it is too great a risk. For advice on annuities and the best annuity rates around then speak to an independent advisor you can trust.