This post is brought to you in association with Money Vista…
I know I’m not alone in being nearly 30 but not yet having a pension. Our focus for the last couple of years has been saving the huge chunk of cash needed for a deposit on a house these days, so a pension hasn’t been top of my list. But now that we have that cash, my thoughts are turning to the future. It may be a long way off yet, but the thought of working this hard when I’m in my 70s doesn’t really appeal!
With that in mind, I’m inviting the experts at Money Vista to the blog today, to share their advice about creating a worry-free old age.
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When you have a young family it is hard to think of those days far off in the future when the kids will have flown the nest and you will be in your old age. The stresses and strains of budgeting for a busy household have only got more intense in recent years, with all the effects of austerity and government cutbacks taking their toll.
With inflation rising faster than salaries and bills getting higher, you could be forgiven for thinking that these are the most difficult times you will face. However, the sad reality is that many older and retired people are the ones who are being hardest hit by the current situation. More worryingly it is getting harder to predict how things will pan out in the future.
State Pensions
Fortunately the UK has one of the best welfare systems in the world, and the ‘safety net’ covers people of all ages. In fact, benefits for the elderly are the biggest cost to the welfare budget, and in these tough times even pensions are undergoing changes.
In 2016 the age that you need to reach to qualify for a pension payout will increase, but the changes will also mean that there is a simplified ‘flat rate’ pension introduced to replace the more complicated system currently in operation.
Personal Pensions
With the whole system of the state pension currently in something of a state of flux, more people than ever before are taking an interest in providing for themselves by way of personal pension plans. Although some may think that they can’t afford to put money aside into a pension pot whilst times are hard, it may cost far less than you think to build up a sizeable amount over time.
Plan Ahead
As it is never too early to plan ahead for your retirement years, and indeed the earlier you start the more effective your pension plans will be, it is a good idea to find out exactly what your options are. In order to make any kind of financial plans, you need to be armed with all the relevant information to enable you to make the right decisions.
Using an online pension calculator such as the one provided by Money Vista will allow you to quickly and easily get an overview of how much difference you could make by setting aside whatever you could afford.
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