MoneyMagpie

Aug 20

When should you start thinking about your pension?

Reading Time: 3 mins

Your pension is the money that keeps you going financially during your retirement life. Since you might not be sure how long this period might be and the types of needs that might arise, it is better to start working on your pension early enough. While doing that, it is essential to learn about mis-sold pensions and how you can avoid such issues. In recent years, the UK government has spent a lot of money to address the problems related to mis-sold pension, but it takes time to process a claim. The number of mis-sold pension claims has been increasing over time, so make sure you approach the matter carefully.

If you are reading this and are in your twenties, thirties, or forties the chances are that the last thing on your mind is saving for your future. Though this is an observable trend among youngsters, there a need for a well-formulated plan to start saving immediately one starts to have a stream of income. Understandably, young people find saving for a pension quite difficult. This is because the process is lengthy, and they have to sacrifice what they might need now, to save for the future. However, that might not be the best way to look at it.

Financial experts advise that while some people might have money in their prime years, they still could lead poor lives if they don’t think about their future now. Many individuals get shocked when they retire, but they don’t have enough financial capacity to meet their medical and nutritional needs, which are crucial. Therefore, it makes sense to take your time and start planning since that is the time you will need your money more than ever. Most health complications come when you hit 65 and beyond. If you have a reasonable financial plan for retirement life, accessing the best medical care becomes easier.

 

How to Save For A Pension

SIPP is one of the best ways to get a decent income after retirement. Though one can only make SIPP claims after they have retired, it is a great way to cover for essential expenses that would otherwise be problematic without a decent income. How much should you save for a pension, you ask? There is no thumb rule for the fixed amount you should save for a comfortable retirement. Instead, to have enough money to take you through life after retirement, it is beneficial to embrace SIPP claims and other viable schemes as soon as you can.

When working on a pension, one can easily get confused about things like SSAS, QROP, defined benefit pension, mis-sold pension, mis-sold annuity, annuity claims and final salary pension transfer. These are the issues that contribute to things like a mis-sold annuity. Note that making annuity claims is a bit bureaucratic, and should be avoided by all means. Start talking to your employer about defined benefit pension so that you start to plan for it beforehand. If you have a friend or loved one with knowledge of how SIPP and SSAS works, you can ask them to share some tips. Make a point of educating yourself on mis-sold pensions as that can lead to major losses.

 

Final Thought

A final salary pension transfer is one of the best ways to increase the amount of money you get from your current job on retirement. You can consider using QROP as you get started on your savings journey. In case you make a saving and it doesn’t go as expected, you can always get claims advice from a financial expert. They will tell you how and when to apply for a claim in case you fall victim of mis-sold pensions. A pension introducer can also be resourceful if you want to learn more about pension and how you can work on it.

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