Whichever way you want to look at it, time moves fast. It is easy to put off starting a pension until later in life. However, what happens if you reach 50 and haven’t got round to setting one up? Here are some tips on starting a pension for the late bloomers out there.
1) Work out how much you will need
Take into consideration what you are earning now, and your current expenditure and sum up how much you think you will need to live on when you retire. This will help you plan how much you need to start saving at this point in your life.
2) How much will you receive from your state pension?
The Department of Work and Pensions can give you a forecast of what you are due to receive, but it’s worth noting that it doesn’t take into consideration any changes to the pension scheme that may come into effect.
3) Start saving now
It is never too late to start your pension, although if you are looking to retire at 65 with a sizeable amount then you really need to start saving now. Sacrifices might have to be made for you to reach a certain amount but it will be worth it in the long run.
4) Make changes to your Will
It is useful to update your will regularly to avoid any problems later on, and if you are starting a pension, now is the perfect time to do so. Every pension scheme is different – if something happens to you, then it usually falls to each scheme to decide who receives payment. If you don’t update your will, then it can become invalid and could cause disputes amongst your family members. Although wills can be challenged, why contest a will when you have the ability to make changes at this moment in time?
5) Seek help
If the process is stressing you out or you are confused with all the jargon, then don’t hesitate to contact a professional who can assist you in these matters. A financial advisor can advise on the best pension for you and can devise a strategy that suits your wants and needs.