Saving money at any age can be tough, but if you’re on the brink of leaving work or have already retired, it can feel like there’s a lot more pressure to save for your old age. Here at Ashley Park Financial Solutions we understand the worries that can come towards the end of your working life and beyond. So we decided to give you some top tips to help you along the way.
Pensions can be complicated if you’re not sure what you’re signing up to. If you’ve saved into a pension throughout your working life, you’ll more than likely have to purchase an annuity. You trade in your pension lump sum for a regular income that usually lasts for the rest of your life. It’s always best to shop around before you buy an annuity, to find the best rates of return for you. If you’re not sure, you should speak to an Independent Financial Adviser, who can tell you where your money is best placed.
If you’re claiming a weekly individual state pension, you may be entitled to a pension credit top-up. Millions of pensioners on low incomes are entitled to this but don’t claim it because they’re unaware of it. If your total income is under £137 a week, it’s likely that you’re eligible; you can call the Pension Service on 0800 99 1234 to check.
Claiming a state pension doesn’t mean that you’re not in control of your income; there simple are ways to improve your returns that can make a big difference. For example, if you have any outstanding National Insurance payments, then it’s certainly worth paying a few hundred pounds as it can add thousands onto your pension packet over the years. And, if you’re in a position to do it, deferral of a state pension is a good idea. Your future weekly income increases by 1% for every five weeks you delay.
When you leave work, you may well decide that you’d like to spend some of your later years seeing the world. Pensioners can secure travel insurance for as little as £23 a year for Europe and £35 worldwide. As you get older, these prices will go up, so be sure to shop around.
You should also be sure to get a free European Health Insurance Card, which will afford you treatment in state-run hospitals at the same price the locals pay. Click here for more information.
If you decide you’d like to make a few extra pounds during your retirement, then you have every right to try. House-sitting might be something to consider. You can look after homes for people while their at work, particularly if they have pets and make a bit of extra cash every week.
You may also be able to claim cash from your home by installing loft or cavity wall insulation. For more information, visit the Energy Saving Trust’s website.
Seems like an odd suggestion, but university isn’t just for fresh-faced teenagers! If you don’t already have a degree and would like to study for one, your tuition fees will be paid for you. They’re only repayable if you earn over £21,000 or more a year. So no need to worry about making repayments!
If you're struggling with money issues, visit the Ashley Park Financial Solutions website for our full range of services. You can also follow us on Twitter for regular updates.