Have you ever wondered whether you are going to have a comfortable retirement? While financial expectations and needs vary from pensioner to pensioner, effective retirement planning is crucial for a comfortable retirement.
It is thus important to have an understanding of recent pension reforms, changes in life expectancy and your retirement options before you start retirement planning advice in London.
The new, flat-rate state pension rate is deemed to be a fairer and simpler system by Pension Minister Steve Webb. The current rate of 97.65, which can be topped up with pension credit will give way to a flat rate of 140.
This new rate simplifies state pensions, will reduce the need for means-testing, can help women, and low-paid workers, while also encouraging people to save more for retirement.
The government is also planning to increase the state retirement age to 66 for both women and men, a reform that is in accordance with increasing life expectancy, but will foreseeably hit low-paid working men the hardest.
Starting to think about your retirement finances early enough is a crucial first step.
While taking care of your family, paying for your children’s education and paying off mortgage loans, and possible investments should be the primary focus of your financial planning from your late 20s to your late 40s, try to establish a stable financial situation and keep your retirement in mind.
Clear off all your debts, save as much as you can, think of long long-term investments, and join your company pension scheme. If you pay attention to all these factors, you’ll have a strong base for your future retirement planning.