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How Will You Finance Your Retirement?


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by: icampbell
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Word Count: 500
Date: Mon, 7 Feb 2011 Time: 7:58 AM

Many people work long hours to bring home a good income, so it should come as no surprise that a lot of us are looking forward to the time when we can retire and put our feet up for a well earned rest.

However if we were to say that the same number of people were busily making good provisions for their retirement years, we would be woefully wrong in doing so. Unfortunately a lot of people take the time to dream about their retirement years without actually planning ahead for them financially.

In reality, the sooner you ask yourself how you will find the money to fund your retirement the better off you will be when the time eventually comes. The most obvious way is to get a pension; the state pension is never going to fully provide for all your needs so it is vital to put some other methods in place to help meet your bills and requirements in the future.

Company pensions are a good option if you work for a company that offers them. While final salary pensions might be a thing of the past you can still get a reasonable income from a company pension if you invest in it for long enough. Think of the other options too though, such as stakeholder pensions and SIPPs.

But there are other ways of investing for the future as well. For instance many people take the opportunity to invest in property. This could be as simple as moving house every few years and gradually buying larger and more expensive properties in the process. When retirement comes many people will then sell up and buy somewhere smaller, so they have an overspill of cash they can use to fund their daily requirements.

Other methods for investing for the future include savings accounts, bonds and ISAs. All of these can form another part of your retirement income if you invest in them regularly. Stocks and shares may also prove to give you decent returns, although of course you should always remember that there is a chance you will lose money instead of gaining any. You should always consider the risks in any investment you are thinking of making, and explore all the possibilities before you go any further.

As you can see, not only is it necessary to start making good plans as soon as possible, it is also necessary to find out as much as you can about the different options. Will you claim your pension on retirement or opt to buy a life annuity instead for example?

Whatever you do, you can see that planning for your future is extremely important. Once you get to retirement age you will be glad you planned ahead for it.

The author of this article is a part of a digital blogging team who work with brands like Standardlife. The content contained in this article is for information purposes only and should not be used to make any financial decisions.

About the Author

Isla is a part of the digital blogging team at cashzilla.co.uk who work with brands like Standard Life. For more information about me, or to keep up to date with the latest in finance news, check out my posts at cashzilla.co.uk or visit my Twitter account, @cashzilla.



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