Be Ready For Retirement & Plan Your Pension Now

In your early twenties it is hard to imagine that day when you can stop working for good. However, pensions have been big news recently and regardless of your age you should think about what kind of financial situation you want to be in come retirement.

How to go about setting up a pension

Setting up a pension will require some research as there are many different types of pension options. You should look at whether your company has a pension and also investigate pension schemes offered by outside agencies. In addition, don’t be afraid to go to a financial advisor for advice on which pension options would best suit you. Finally, think about investments if you are young. Buying property to let can be just as effective over a long period as paying additional pension contributions.

Why is it important?

As you grow older, you will inevitably reach an age where your health will prevent you from working. When you are no longer able to work you will need an income and this is where pensions come into play. They can provide you with income security during retirement and allow you to continue living a comfortable life. Having an adequate pension pot will be essential. Pensions also benefit the economy in that they allow people to continue contributing by purchasing products.

Workplace pensions

Many employers now offer a workplace pension that is open to all employees (sometimes after a specific period of working there). There are a number of different types of pension that they might offer, so you might want to research which one will provide you with the best deal. Possible pension schemes include: defined benefit schemes which can be calculated on your final salary or an average of what you have earned over your entire career. Alternatively, they could offer defined contribution schemes, such as money purchase schemes, group personal pension plans and group stakeholder pension schemes.

Private pensions

There is also the option of private pensions which can be purchased from insurance companies, investment organisations and banks. Policy holders contribute money, it is invested by these companies and a fund is built up. When you reach an agreed age, you are able withdraw a certain percentage of the fund and invest the rest. The outcome of these pensions schemes depend on the amount invested, how well investments perform etc.

How much you should be saving

You should start thinking about how much money you are going to need (remember you may have paid off borrowings by this time). There are a number of questions you will need to ask yourself in order to give yourself a rough idea of how much money will need to save. For example, when are you hoping to retire? How much have you already saved? How much do you want to have during retirement? What benefits are you going to receive through social security? There are some useful pension calculators available on the internet which can help you calculate this. When you have decided on plan you will need to stick to it!

Rising retirement ages

Retirement ages obviously depend on where you live, but it is true that in most countries the retirement ages are going up, up, up! Due to the fact that most people will be working way past previous retirement ages, it is important that you have your pension plans in place.

What you could face if you don’t have a pension

Facing old age without any savings is a grim prospect. The likelihood is that you will have to work longer, or if ill health prevents it, have to endure a worse quality of life. Without a pension you could face poverty in old age, so having a plan is vital.

Hannah Wilkie has experience in the field of retirement planning and likes to get her clients to start saving early. If putting money into a pension plan is too inflexible at this point in time then she recommends you search around for the best ISA rates so you get the best returns on your money but you are also less tempted to spend it than if it was in a regular savings account.

A Tax Consultant Can Help You Save on Your Taxes

Do you currently run your own business? Do you find that taking care of the finances and taxes more bothersome than you care to admit? If you’re looking for ways to save on your taxes, why don’t you hire a professional tax consultant? Even if you know the tax laws yourself, since the laws are always being updated, there is a huge chance you could miss something. That’s why it is best if you find a professional that lives and breathes the tax code. If you manage to locate a good one, they can save you countless amounts of time, energy, and money. Of course, there is still the possibility of finding an inexperienced one that just causes anguish and wastes money, so watch out.

Before you choose a tax consultant for you, ask advice from friends and family. If you can find recommendations from someone you know, you may be able to find someone that is hard working enough and cares about you. Depending on the tax specialist’s speciality and who they work which, different kinds of consultants will be able to work with you. It’s often a good idea to review several candidates before you pick one and be aware that even if you hire someone that sounds the best for the job, you may still get a lemon. Listen to what your gut tells you and you should be fine.

You may not neccessarily need a professional but you’ll find that if you own a business, they can be invaluable. Some people don’t want to hire a tax consultant because it can be expensive, but they’ll make up for their cost in time. You’ll be glad you did, because they may be able to save money in places that you never noticed before. At the very least, you get to avoid the anguish of excessive paperwork.