A Guide to Financial Planning for Later Life

A Guide to Financial Planning for Later Life

It was recently revealed that British workers are the worst in the world at saving for retirement. The study conducted by HSBC found that the average British worker will only save enough to cover around 7 years of retirement out of a possible average of 19 to 20 years.

A Guide to Financial Planning for Later Life

A Guide to Financial Planning for Later Life

A Guide to Financial Planning for Later Life

Their findings also showed that more than half of the working population are not making adequate preparations for later life. It seems like people in the UK are ‘putting off’ the inevitable. With this in mind, here are some steps which you can take now to save for your retirement.

Funeral advantage program assists seniors

One of the reasons why so many people avoid starting their retirement fund is because they can get weighed down and overwhelmed by figures, time and financial knowledge. It may be worth seeking out a financial advisor to start you off on your saving journey. You can work with the advisor to devise a financial funeral advantage program assists seniors plan which fits around your family life and annual salary.

As purse strings become increasingly tighter, it is important to get into the habit of budgeting on a monthly or even weekly basis. A good idea is to also note down your receipts each week and keep a diary of all your main expenditures. By tracking your activities, you can assess which spending areas need to be addressed.

Schemes

Choose the right pension scheme for you. The first step is to find out what sort of pension your employer offers. If a workplace pension scheme is in place, it is worth signing up to gain more money for your savings. Make sure that your current pension has low charges as well as low start-up fees and any extra contribution fees. There are plenty of comparison websites to help you choose the most affordable pension for you. If you are self-employed or you have a varied income from month to month, it would be better to opt for a flexible pension in order for you to keep on top of monthly payments.

According to news published this year, more basic-rate taxpayers are now opting to store their money in a tax-free cash Isa rather than a standard pension fund. According to figures, cash Isa’s yield more than a pension pot based upon current annuity rates. After death, an Isa can also leave far more money to be passed onto loved ones as many pensions now have poor annuity rates, are reduced by tax and annuities are bought without the guarantee that they will have value after death.

Another financial area which is often procrastinated over is a will. Many online sites such as Rift wills offer advice and a reasonable price for peace of mind. Investing in a will now will ensure that your loved ones have full control over your assets after your death. If you and your partner or not married then the lack of a will can mean that none of your estate will go to them. The estate will either go to your children (however young they may be) or distributed around the rest of the family. If you also develop health problems such as dementia in later life, it may impair your ability to create a rational and competent will. In order to gain financial security for your loved ones, making a will should be of the upmost importance.

* A Guide to Financial Planning for Later Life

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