The UK has many types of pensions – adding to common confusion about retirement planning. Broadly speaking, there are three to consider: the State Pension, defined contribution pensions (i.e. pension “pots”) and final salary – or “defined benefit” – pensions. This latter category can be especially…
There are many reasons why people may have left their pension planning until their 40s. Maybe you spent much of your adult life raising young children, not building a career (a noble thing). It might simply be that you delayed thinking about it. The good news is, your 40s still gives plenty of time to start moving towards…
For most young people, pensions are the last thing on their minds. Your 60s and 70s seem very far away and, typically, the most pressing financial priority (if there is one) is saving for a house deposit. It may also be that young people have retired parents who live very comfortably, with a house fully paid-off…
It is a wonderful feeling when you finally pay off your mortgage and own your home outright. At this point, accommodation is now “free” just as life slows down for retirement. Yet this luxury is becoming harder to achieve. Property prices have continued to rise despite the pandemic – up 11% over the past year…
Have you ever checked what your workplace pension is invested in? It may be that you are on a very good scheme. For many, however, the fees could be high and the range of choice limited. If you are looking to take more control of your retirement investments and their costs, then a SIPP (self-invested personal pension)…
The age from which you can start accessing your state pension depends largely on your age, but in 2021 this is set at 66 for both men and women (expected to rise to 67 between 2026 and 2028). However, you are not required to start claiming your state pension at the point when you qualify to receive it…
The COVID-19 pandemic has led to many undesirable outcomes. One that is less well publicised is the impact on UK women in retirement. According to the Chartered Insurance Institute (CII), the pandemic could lead many women to save less into pensions. This, in turn, may result in women…
It may feel too soon to start thinking about retirement in your 30s. After all, you are barely half way through your career and other financial goals can seem much more pressing – e.g. saving for a property deposit. Yet your 20s and 30s are a great time to consider retirement plans due to one crucial advantage…
Many people like the idea of drawing from their pension from the age of 55 (or 57 from 2028, when the rules change). Perhaps you envisage continuing to work – albeit with fewer hours – whilst supplementing your income using funds from your pension pot. This can work for some people, yet drawing early…
Did you know there is a limit to how much you can save into a pension? It is called the lifetime allowance, and in 2020-21 it is set at £1,073,100. This may sound like an unattainable goal for many readers (especially those on lower salaries starting in their careers), yet it is not unheard of for individuals to inadvertently exceed this limit – without even realising. Should this happen…
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