Want a comfortable retirement? Find out where to start with pension planning

According to a recent survey, pensions are low down on the agenda of things that parents will discuss with their children. In fact, there is such a lack of awareness surrounding pension issues that this has resulted in a whole generation who have not prioritized saving for their retirement.

It has been suggested that this is that millions are sleepwalking into retirement, and that those in their 30s and early 40s are blissfully unaware of what could lay ahead.

In addition, the pressure of debt and confusion surrounding pensions in general has resulted in less than 40 per cent of workers putting money aside for their retirement.

So it’s really time to act now if you are one of these people, and to talk to your young adult children if you haven’t done so already.

A basic state pension is paid to those who have reached pension age and is currently £97.65 per week for men and women aged 65 and above. It is given to those who have paid their NI contributions for 30 years. However, the pension age is likely to rise to 68 for those embarking on their work life given that we are starting to live and work for much longer. Talk to Derngate Wealth to find out how much you have built up and what will be due to you, and when.

The basic state pension is not enough to live on for a good quality of life. That’s why you need to look to another form of income. Latest figures show that 53 per cent of UK single pensioners are living on less than £10,000 which is a very small amount when you consider the rising cost of living.

At Derngate Wealth we believe that it pays to save early. If you start young, due to compound interest you will be much better off than starting to save later on. We can help you work out what you need to set aside in order to have enough to live on both now and in the future. We will offer you peace of mind and believe that there is no point in burying your head in the sand; reality will catch up with you when it’s too late to change your financial future.

One of the most popular options is to top up your pension with a workplace or private pension scheme. However, given that investments can go up or down depending on the investment, it’s important to get good financial advice on shares, the stock market and the performance you can expect to see.

When you retire, the pot of money you have built up in your private or workplace pension can be used for a regular income, called an annuity.

It’s important that you plan now, know your options and are aware of all of the products available to you, in order to ensure that you have enough money for a comfortable retirement.

The value of the investment can go down as well as up and you may not get back as much as you put in.

Contact Dernbank Wealth today for comprehensive advice on pensions and pension planning.

 

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