For many, the idea of a pension – or having to actually do something about it – seems remote and strange. It seems like a bridge they’ll ‘cross when they come to it’ and, strangely enough, they refuse to come to it for many years.
In short, it seems to many like something to live on when you’re old and to save for when you’re old. In reality though, if you want security and a high standard of life in your autumn years, you need to start planning early.
Here are just a few tips on how to get your pension plan on its fee
1. Seek detailed, tailored advice
This is a profoundly important matter: get as much and as detailed advice as possible. Initially try online tools, such as a pension calculator from Money Vista and know what you affects your pensions. Don’t be afraid to invest money in getting professional advice on this either.
2. Employer pension schemes
If you have not already done so, go straight to your employer and find out what pension schemes they offer. Many employers pledge to pay regularly into workplace pension schemes on top of salaries so if you’re not benefiting from this you’re simply throwing away extra wages!
3. Assess your debts and regular outgoings
In order to assess what you can afford to pay into your pension scheme and when (a major factor in deciding on a pension type), you need to make a general assessment of your finances.
Calculate all your outstanding debts and judge whether it’s best to channel your income into paying these off more quickly or if it’s feasible to start paying into a pension fund.
Do plenty of research into the types of pension out there and the rates different firms are offering. Don’t end up with a fixed payment personal pension if you’re unable to commit to the set monthly pay-in amount.
If you’re only able to pay in variable amounts, research stakeholder pension schemes which can accommodate this.
Though this will be most important later, when your pension fund has grown through your chosen pension scheme, look into possible stable investments for your pension.