It is always recommended to get financial advice especially when dealing with something as important as retirement. Planning for retirement takes years and years of work and patience, but doesn’t have to be scary! You don’t have to go through it alone.
Own up to your situation
Whether good or bad you should know exactly where you stand with your finances. It is not going to help anything if you shy away from taking the time to understand your financial situation.
Get started early
It is never too early to start thinking about retirement, and it is definitely never too early to start actually saving for it. Invested money has a compounding factor which significantly increases the longer it's invested for.
Better to over plan
You can’t predict the future. Retirement is not a fixed amount of time, so you should always try to save more money than what is expected.
Have a plan and stick to it
Step one is to create a retirement plan. Step two (the harder step) is to stick to it. Saving for retirement can quite literally take a lifetime, from your first day of work until your last. Persistence is key to seeing your efforts pay off in the long run.
First, the three top things to decide are - how you want to retire, how you want to be paid and research the best deal on buying an annuity to give you a regular payment.
The older you are when you take a pension, the higher the pay-outs because your life expectancy is shorter.
Different providers offer different options for receiving your pension. These include taking part or all of your pension as a lump sum, getting regular payments, and investing the money into a fund you can withdraw from.
You don’t have to stick with the same provider! You are able to transfer to another provider who may give you better options.
Providers take many things into account when calculating your pension, including your age and gender, the size of your pension pot, interest rates and your health.
You pay tax on any income that you receive above your tax-free personal allowance.