Knowing how you will fund your retirement can be difficult to determine and you may be asking yourself “when can I retire?”. Planning your money can seem a bit overwhelming and complicated, but it’s something that is important to do now. While you can easily discover your State Pension age, you should take your lifestyle into consideration to discover when you can afford to retire. Taking a few hours of your time to properly organise your funds can result in a much happier and relaxed retired life.
Now that a major source of income (your job) will have ceased, it is essential to take account of all of your income sources that you will be receiving when you retire. Perhaps you have decided to take on some casual or part time work or you have some money invested. After you have considered this, look at what you might expect from your state pension and from any other pension you might have been paying into.
It may be difficult to assess your expenditure for the future if you are not sure of your retirement living plans. Try to write down your average spend on essentials and estimate housing/maintenance costs based on current experience. This will give you an idea of the bottom line and may highlight a need to do something to free up some extra funds, such as downsizing your home.
3. Seek Pension Advice
Many people are unaware of their pension entitlements or have forgotten about a previous pension fund they may have paid into. This results in a huge amount of money not being claimed each year. Make sure you get an assessment conducted by the free Pension Tracing Service that the Government runs. You may also be entitled to pension credit so take some time to review this. After you have paid into a fund during your working years, it’s essential to get the most out of it.
4. Consider Benefits and Entitlements
As you are moving into your later years, you are entitled to many benefits outside of your pension. These include the Winter Fuel Payment and council tax benefits. In order to make an informed decision on when to retire, you should take all of these into account. If you are unsure of what you are entitled to, have a look at the AgeUK webpage on benefits and entitlements.
5. Use your Resources
If you have some extra cash that you wish to invest, then you may need some advice. There are a lot of resources available to you for free. There is a money advice service which the Government has now launched which is paid for by the financial services industry. If you have just got a few thousand pounds that you want to put into savings, you can always find the best savings rate online. If you want to work out what your pension is going to be, try out the State Pension calculator provided by the Government.
While it may take a few phone calls and a while on the internet, investing time in planning your retirement is essential. You’d be surprised how much support you can get when you seek advice.