Hiring Financial Services To Plan Your Retirement
Smartly
by: Kathryn
Dawson
Ensuring financial freedom after retirement is a
crucial factor in a financial plan. Most
individuals have several plans to realize after
retirement. Some people plan to buy a villa on a
beach; while others dream of a world tour. Even if
you do not have such ambitious dreams, you need
money to be readily available after retirement for
your daily expenses. This requires smart planning
from early years. Taking a small step towards
financial planning at an early age can guarantee
financial security for a lifetime. If you do not
begin early, the pace at which you would need to
save would accelerate and the cost of the
financial instruments at your disposal would
increase.
One can hire financial services to demystify
pension options and retirement saving plans. These
service providers will answer your questions on how to
sponsor your retirement plans and will help you to
make an informed investment decision.
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Financial Services: How Much Do You Need to Retire?
Consult financial services to determine the right time
to start planning for retirement. Remember, retirement
planning is not only about finance, it also involves
mental preparation to get accustomed to a changed
pattern of life. For some people, it is very hard to
stop working altogether and spent time at home. In
such a case, financial consultant may advise him/her
to start working part time for a few years prior to
full retirement. Alternatively, one can consider a
home-based business after retiring from regular
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Coming back to finances, it is important to analyze
your monetary requirements in the long run. Prepare an
estimate of monthly expenses in consultation with a
financial expert. Now consider different investment
options that align with your long-term financial
goals. Pension funds are an important source of income
post retirement. Thus, one should give due
consideration to different types of pension plans
available and understand how one can monetize them.
Other instruments that blend well with retirement
planning are:
• Savings
• Property
• Investments in stocks
• Individual Savings Account (ISA)
Ask the Financial Service Provider about Types
of Pension Plans.
Financial service providers focus on three basic
types of pension plans:
• State pension
• Personal pension
• Company pension
State pension is probably the most reliable
foundation for your retirement. An individual
who has attained the state pension age can claim
it. According to UK Government data, the state
pension age for men is 65. However, the state
pension age for women will increase from 60 to
65 between 2010 and 2020. Usually, the
contributions to National Insurance (NI) are
accumulated over the years to provide pension to
individuals. Additional state pension is
rendered to individuals who are taking care of a
child or are employed.
Personal pension schemes, which can include
Self-Invested Personal Pension (SIPP)for higher
earners, are an important investment option for
better control over retirement planning. It
involves investment into HM Revenues and Customs
(HMRC) approved financial products. Some of the
financial products covered under SIPP are:
• Stocks listed on recognized exchange markets
• Investment trusts regulated by the Financial
Services Authority (FSA)
• Commercial property
• Bullion market
• Authorized unit trusts
• Futures and options traded in recognized
markets
One can seek expert SIPP advice to leverage
these investment options and secure financial
freedom after retirement. Remember, state
pension guarantees only sustainable income to
every individual. To maintain a good lifestyle
and make your ends meet, personal pensions
(including SIPPs) are an important element in
your long term financial planning strategy.
Company pensions are set by employers and
vary between organizations. Usually, the company
pension fund is deducted from an employee's
salary or deposited by the employer or both.
Since April 2006, the government has simplified
regulations governing personal and company
pension. Tax relief has been increased on
investment into retirement instruments. With
investment planning, it is possible to invest
into a homogenous mix of different types of
pension instruments. Consult financial services
providers to make the best of the available
retirement options.
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