Once you retire, you are more than likely to want to worry a bit less, and enjoy life to the fullest. For some, that is not very easy to do as they have not looked after their retirement capital and may see a lower return on their pension pot than they would have thought. This is really the time of life when you want to make sure that you have spare cash, and a good retirement income, will ensure that you can enjoy life.
1 Be An Active Pension Planner
Don't sit back on your laurels and assume that you are going to have enough money to live on in your retirement. Things change all of the time in the world of finance, and it is a good idea to complete your own pensions review. It is worth remembering that investments go up as well as down, and you need to stay on top of things to make sure that your retirement investments are in the right places.
2 Don't Rely On One Source
You should not rely on one source, or income revenue stream, when it comes to your pension. Today, the financial markets are much more volatile, outside changes such as new governments taking over, may influence your pension investment. Investing in stocks and shares is not a bad idea at all, but income from stocks and shares should never be your only income when it comes to your pension.
3 State Pension
If you are fortunate enough to be able to access a State Pension, you should by all means do so. But, in the years leading up to your retirement, you should check on your State Pension. Are you going to receive your entire entitlement, and have you paid in enough to your State Pension? If you have not paid in enough to receive your entire State Pension, it might be a good idea to check if you can top it up. Make sure that it is a cost effective option, and that your entire pension investment planning will benefit from your decision.
4 Work Out How Much You Need
Something that a lot of pensioners forget about is to work out how much they need. It is easy to presume that you are going to have enough money to cover your daily living expenses, and to go on on all of those holidays that you would like to take. Could it be a good idea to angle your investments to your personal needs? You may for instance want to have one particular investment which will cover your daily living expenses, and then another one which will cover the fun stuff such as going on cruises.
5 Keep Paying Into Your Pensions
If you do have a personal pension plan, you should try to keep paying into it as much as you can afford. Private pension plans are based on the idea that you will be buying an annuity at the end of the plan. There are other options now, but for most people pension annuities are still the best way to ensure they have enough income in their retirement. Most pension annuities are easy to contract, and you will find a good range of them out there. The amount of money which you have been able to save in your pension plan, will set the limit for the pension annuity that you can afford to buy.
6 Pay Off Your Debts
If you have debts nearing retirement, you should be absolutely honest with yourself about them. Hopefully you will have paid off the mortgage, but you may have credit cards or loans outstanding. Make sure that you know how much you owe, and then sit down and think about how you can pay it off. Don't be tempted into things like loan consolidation. It sounds great, but most of the time it works out very expensive. Stop spending on your credit cards if you have a balance at the end of every month, and settle your loans. You can even ask for a loan settlement.
7 Switching Your Pension
Should you have been involved with several workplace pensions schemes during your working life, it is a good idea to take a look at them. Most people tend to ignore their workplace pensions once they have left the company, but they are doing so at their peril. Of course, most companies don't want you to remove your pension, but it is a good idea to switch if you are not getting the best return on your pension. Modern pensions are often cheaper to run thanks to new technology, and you should really find out if you can put your all of your workplace pensions in the same pot. It is one way of boosting your retirement income for when you finally retire.
8 Investing in Bricks and Mortar
Investing in bricks and mortar is always a good idea but it should not be the sole capital for your pension investment. Remember that the housing market can crash as well as the stock market, and only invest in bricks and mortar after having checked out the additional costs. You may have to borrow the money to purchase the investment, and then you will also have maintenance. But, this could be a good route to go down if you like to rent out a property. Allow the rental income to build up, and use it towards your pension. You may even be able to pay it into a pension scheme, or put the money into a trust. When you are approaching your retirement, consider selling your bricks and mortar investment, and put additional income in a special scheme. This could be your cruise budget!
9 Private Health Plans
Is it a good idea to invest in a private health plan? It could be a good idea to invest in a private health plan. When you get older, you are likely to suffer a few health problems, and it is often cheaper to start to pay into a private health plan when you are younger. Many of them offer excellent terms, and with so many national health services around the world in crisis, private health plans could be a worthwhile investment.
10 Save On Tax
Smart tax planning is an essential part of good financial retirement planning. It is all too easy to assume that the tax man is going to be nice to you when your retire, but he may not be nice to you at all. Seek the advice of professional financial advisers and make sure that the company you use, are qualified to hand out advice. Many companies are only after earning commission, and may not have the best ideas. If you are not comfortable with your financial adviser, you should immediately step away.
Finally, are you accessing all of your benefits? Check if you are entitled to any special benefits. It could be that if you are looking after the grandchildren, you may even be entitled to Grandparents Credit, or discount on your council tax. Remember that if you don't ask, you don't get. Asking questions and staying on top of your pension planning, is what is going to make your retirement more enjoyable. Being able to afford to do the things that you would like to do, is after all what a retirement should be all about. A good place to get advice if you are British, is to contact the Government's Pension Wise service by calling 0800 134 3944. You can also learn more about this service by taking a look at www.pensionwise.gov.uk.