Retirement Advice UK
Some people enjoy being retired whereas others are afraid of retirement due to the financial challenges they face in their later life. In this article we will discuss some practical steps to help you feel prepared for an enjoyable retirement.
Chances are, you might be planning to travel to the places you have never been, be willing to try out a new hobby and looking forward to spend more time with friends and family but do not have the required funds for all of that. In order to avoid this and live your life fullest, it is essential that you plan ahead.
Start saving for retirement in an organised way
Sadly school doesn’t prepare people in the UK to develop the required financial literacy to confidently plan for retirement. Home ownership has been a great way for many people to build wealth in the UK however unless you are willing to consider selling your property then it won’t fund your lifestyle when retired.
Alternative approaches might be to consider developing an online business. Many retired people in the UK engage in affiliate marketing in order to earn an income to support their retirement. There are supportive global communities which have been set up with the purpose of helping retired people (and others) start an online business such as Wealthy Affiliate.
Pension reforms in the UK during the year 2015 resulted in an enhanced level of financial awareness among individuals and the financial consultants, resulting in better financial decisions in both organisations and individuals.
If you are just starting off your retirement plan or if you have already working on one, you are advised to consult an agency which usually provides such services. If you have minor financial tasks consider managing them yourself, it will save so much of your time and extra costs. However, if you have a plan to invest a higher amount in retirement plan consider taking help from financial consultants.
Lack of financial awareness results in poor lifetime financial decisions. If you are the one who has just started saving for the retirement nest egg, invest your money for growth. This means that invest with a purpose to grow your investment over a longer period of time.
Do Not Rely On a Single Source for Financial Stability
Traditionally, in the UK the two major bodies that were responsible for the retirement planning of individuals were employers and the State. People would not give a second thought about how their retirement period will look like. Although these are two major occupational sources of retirement income however you cannot rely on it for the financial stability during your retirement period.
Things have been changed over the period of time now. Today, one of the major goals of the majority of the people in the UK is saving enough money for their retirement and making the right investment decisions so that they can get most of their retirement.
There are several major barriers to having enough retirement income. One of the main reasons is that people do not engage in retirement plans early enough, it is recommended that they should start off during their mid-career.
Secondly, there is a lack of proper financial advice. There are several companies that provide the retirement plan training however they are not feasible due to the fact that they charge higher amounts for their services.
Instead, introducing retirement plans and coaching in the workplace would save so much time and money while benefiting the whole society. The low contribution at the workplaces is also a major reason in failure to achieve money goals during the retirement. Due to these aspects, it is quite hard for individuals to do an easy transition from work to retirement and often they hesitate.
Use Retirement Calculators
In the UK you can calculate your retirement pension amount and the age of retirement using a retirement calculator. The retirement calculator helps you determine both these factors with accuracy.
If you are new to the concept and you have never used this before, you can seek help from the AgeUK. AgeUK is a financial planning agency that offers services to people regarding retirement, retirement pension and retirement age.
It is important to know what benefits you can actually claim. If you have been working and living in the UK for the past 10 years, and you have contributed to the States Taxes and Social security system through National Insurance Contribution then you are entitled to receive UK retirement pension.
UK pension system is one of the best pension systems in the world, and it is ranked on 11th which is much better than several other developed countries. In case you do not fulfil the requirements mentioned above, or you are retiring after working five years in the UK, then you are entitled to withdraw your pension from your native country.
Consider Inheritance Implications When Retiring in the UK
If you are retiring in the UK as an expat and you have real estate properties in both your native country and the UK, consider writing a will for the distribution of the property.
Whatever is the scenario if you are planning your retirement in the UK, seek professional guidance from the probate law and inheritance tax. This will avoid many ownership issues both in the native country and foreign country.
Once you have settled down all the inheritance implications, you can now enjoy the rest of your life doing what you love. However, there are a few things; you should do to have an enjoyable retirement life.
If you are planning for retirement in the UK, you can still enjoy a lot of benefits even after retirement. UK government offers a number of activities and social clubs both private and government funded, which allows membership for the retirees either for free or a much discounted rate.
You can enjoy a range of recreational activities at community centres. You can enjoy being part of the book club or the sports club. This is a great opportunity to meet and greet people who belong to your area and it is a very enjoyable process.
Many expats do not have English as their first language. In order to avoid challenges during your retirement, you should learn English. You can choose any of the schools available in the UK and learn English.
What retirement advice would you recommend to the people who live in the UK? Do you have any suggestions keeping in view the fact that UK has withdrawn the legal retirement age? Let us know in the comments section below.