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Money and pensions: planning for the future

pensions and planning for the future - guest blog postLet’s face it pensions and planning for the future are not exciting things.  I don’t currently pay into a pension, I know I should  but the whole thing confuses me and at 35 I keep thinking I’ve got a long way to go.  I get paperwork for the pensions I do have and they come in dull brown envelopes with official looking letterheads inside.  If pension companies sent me information in sparkly glitter envelopes I’d be more inclined to open and read it but I highly doubt this will change.  Then there’s the confusing jargon they use in letters.  Most days I struggle to remember whether Roo requires a PE kit or a book bag so asking me to anticipate what my expected annual income may be when I retire is seriously pushing the limits of my already taxed brain.

So here’s a guest post that aims to quash the boringness of pensions.

Getting old is not something many think about but it is important. As a parent it can be easy to focus on the family and children, especially from a financial point of view, but looking after your future is just as important now.

As such, here are a few ways to look at the future and what to consider about your retirement.

Pensions

One of the easiest and most common ways to save for the future is through a pension. There are various types of pensions available, depending on your circumstances, and as a UK citizen you will more than likely be entitled to a state pension. Even then, you need to check to see how much you can expect personally as it differs depending on your circumstances and how much you’ve paid in over your working life.

Likewise, work-based pensions are becoming more common which may prove a beneficial alternative. This can be quite complicated to work out but finding the best pension available to you will increase the money you have during your retirement.

You can find out more about pensions at Money Vista.

Pension+savings

Savings and annuities

In addition to this, you also have the option of saving up or investing in an annuity. Savings are straight forward and consist of collecting as much as you can to support yourself financially throughout your retirement. Arguably you have to gauge how much money you will need on your own whereas pensions and annuity can offer longer, regular payments that make these calculations for you.

An annuity, simply put, is where you pay in a large amount of money in exchange for regular payments. This can prove useful as many annuities pay out for life. As such, paying into one can ensure a more permanent form of income with which to support yourself.

Independent children

Finally, as a parent, you may need to learn and adapt to focusing on yourself. Once you reach retirement, most of your children may be independent and this means you’re no longer responsible for supporting them.

Pensions can often be limited on what they offer you so money spent on other people might be more difficult to find. Putting your needs first is therefore essential and you may even find that you begin to turn to your kids for financial aid rather than the other way round.

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Disclaimer:  This is a guest post that  adheres to my PR Guidelines. The views expressed in it are not my own and the article cannot be reproduced without prior permission.  Interested in getting a review, competition or guest post for your product? Contact me Charlotte Everiss for details

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