What you should know about retirement funds
Avoid financial turmoil during your retirement years by following some of these money tips.
13:49 02 January 2014
If you thought you would not need to worry about your retirement because a pension would take care of everything, then you might be struggling by the time you have to retire. More often than not, retirees are finding out that their pension is not sufficient for their normal lifestyles.
If you want to avoid the stress and scrimping that is otherwise inevitable, keep reading.
- Get an extra pension plan in addition to one that is provided by your employer.
- Take advantage of pensions and other financial opportunities, which allow tax relief.
- Always plan that you will be living longer after retirement than you anticipate. There is nothing worse in terms of later life finance than planning funds from 65 to 80, only to realise at 85 that you still probably have quite a few years to go and no money.
- Do not be afraid to seek advice from financial professionals or take advantage of qualified free advice from charities and organisations. Even if you decide to pay for some financial advice, it is usually well worth the investment.
- Decide if you want to have someone manage your retirement portfolio and collection of investments, or if you want to be the one to manage it. If you believe that you would like to learn more about how your funds are being invested, you may benefit from the challenge.
- Taking your pension early could result in a financial penalty and higher tax fees, but certain situations may entitle you to gain the funds early without the penalty. Again, seek advice and information from knowledgeable persons before making such a decision.
- Remember that you can increase your potential income by investing in other sources such as rental properties, business startups, stocks, shares, ISAs, bonds, and a host of other options.
- Make sure to contribute as much as possible to pension accounts, especially if your employer matches your own contributions.