No matter your actual age, every person will eventually reach retirement, the timing is different; some will reach this age before others. However, being prepared for this event will allow you to have the money to enjoy your retirement. With the current aging population, people are living longer and this puts a financial strain on any retirement plan.
To enjoy a long, comfortable retirement, save more today.
If you are planning to retire at 65, there is a strong possibility that you could live for at least another 30 years. Do you have enough income that will allow you to support yourself for this long? It is nearly as long as your working life; this puts pressure on the money that you have available, lasting for the length of time until you die.
Saving for retirement
It is even more important that you are considering saving for your retirement. Putting money away each month with the knowledge that the money is going to enable you to retire and not continue working until the end.
There are different options that are open to you and understanding them fully is your best option to make sure that you are doing the right thing for your current situation.
There is a legal obligation for the larger companies to provide the option for a work place pension. This is ensuring that millions more people are putting away money each month for their retirement.
When the UK first introduced the state pension, it was unlikely that many people would reach the age stipulation, whereas now many more people are retiring and this is causing stress on the current system. There are too many people claiming, in comparison to those that are currently working; this is making a top-heavy situation which is liable to collapse. This is just one of the reasons why the government is encouraging individuals to save for their retirement.
For many people this new scheme is their only form of saving, they are unable to fund savings accounts and the rising cost of living. To then be subjected to a minimum 1% from your wages might not seem much but when you rely upon the money to pay your bills, this reduction in wages by your pension contribution could be something you don’t want to participate in.
However, this is going to ensure that you might actually have some money with which you can retire in the future. You are able, when you reach retirement age, to opt how you take your money. In the past, an annuity was the only option for people living in the UK. An annuity is a guaranteed payment each month based on the amount of money you have saved. With the removal of this stipulation, it does give pensioners the option to choose how they spend their money, but it might become difficult for many people to have enough money to last at least 30 years, unless they have saved throughout their working life.
There are options open to you if retirement is looming, but you would need to take action sooner rather than later to ensure you are able to afford to retire.