How can you financially prepare for retirement?
Published Tue, Aug 22, 2017 Updated Tue, Feb 16, 2021
Retirement and pensions are touchy subjects in today’s economic climate. The retirement age is set to increase along with life expectancy, and the introduction of new government pension schemes is causing unrest among many trying to financially prepare to ensure they can afford to retire when the time comes. If you’re losing sleep over your own preparations for retirement, here are a few options you may want to consider…
If interest rates are low and you have a savings account set up ready for your retirement, then you may want to consider investing the money instead in order to get a higher return. If you have no idea where to start when it comes to investments, check out this article for some ideas regarding where you might want to consider putting your money.
Easy access ISAs
Another option is to transfer your savings to an easy access ISA in order to benefit from tax-free interest. If your savings are in a savings account where inflation is higher than your interest rate, then you’re actually losing money. Top rate cash ISAs can increase your savings by £100s; to get an idea of how much you could earn rather than lose, read the Money Saving Expert guide to the best cash ISAs.
If you only have a small pension fund or require certainty, annuities could be the answer. An annuity is designed to provide an income (usually for life) for those who have invested a lump sum from their pension. If you feel an annuity could be the best option for you, then do some research online and call a few companies like No Nonsense Annuities to discuss your options.
Whilst retirement can be a worrying thought in today’s economic climate, being aware of the different options available and keeping up to date with developments in the economy will ensure you’re in the best position possible to make informed decisions when planning for your retirement.