You are in your 50s, you have a few years left before retiring, and you have already started to panic. You are now relying on what you have saved during your lifetime. You start checking all the funds and get shocked to see that the amount you were expecting is not the same. You might have used the money to pay mortgages. You must have known already that you can access your pension money from 55 years of age. If you are thinking just to spend all your money slowly, you will end up with 0 money one day.

Whatever funds you are going to end up with, you need proper planning for your better tomorrow.

Check all your pension finances to start your planning

You need to get an idea about your pension wealth. You might have changed many companies throughout your work life. It means you need to check all your pension pot. One of the easiest things you can do is combine all of your pension pot to manage it in the future. You can also use the government pension tracking service to track all of your old pensions.

What about your future?

If you already have your own house beforehand and are planning to live your life in the same house after retiring, this is not for you. But if you have not planned where you will live after retiring, then we will help you. You might be thinking of selling your current house and shift to another city or maybe a country nearby your family.

You are buying a new house where you can live peacefully after your retirement means requiring some money. Obviously, there is an emotional attachment with your home, making it difficult for people to leave. Redecorating, stamp duty, removal of items, and moving your household furniture requires a lot of money. If you have extra money saved for all these things, then you can move to a bigger house or the home of your dreams.

But if not, then you might need to downsize your home. If you are currently living in a 4 bedroom villa and your budget to move plus purchasing a new home costs more than what you have in your pocket right now, then it can be a problem. You can think about buying a home in the suburbs to get a bigger house in budget or move to a small area.

How much money do you need to retire peacefully?

When you have worked so hard during your whole life, you surely want to live a peaceful and stress-free life after retiring. Do you know that Pensions and Lifetime Savings Association has launched three living standards that help people figure out how much income you might need?

According to PLSA, the minimum living standard states that you require 10,200 pounds per annum to cover all your basic needs. To move ahead, a moderate level includes 20,200 pounds per year which can make you more secure.

 The most comfortable one is 33,000 pounds per year, helping you live more luxuries and financially free life. But please note that these figures are based on people who live out of London.

How to invest your pension money?

We understand that you want to invest your money somewhere so that you can enjoy secured income without any problem. The first option is to invest your pension money into Annuities, providing you with a secure income. You can take 25% of the tax-free amount in an annuity, and then you will have to pay tax for your income.

Next, you can do choose the drawdown method. Through this, you can invest your pension money and take the money that you want whenever you want. However, this is a risky option as it could make you run out of cash. Like an annuity, you can take 25% of the amount first, which will be tax-free.

The next way is to take lump sum money from your pension funds. Decide how much you want to invest and enjoy the first 25% amount as tax-free and give tax from next time. This method involves little risks, unlike annuity.

However, there might be times where you require funds instantly. It might be because of any emergency, such as a medical problem or car breakdown. For such hard and trying times, you can apply for loans for bad credit with no guarantor, which have the benefit of no fees and instant decision. You need to pay no hidden costs and require no guarantor. If you have bad credit, you don’t need to worry as you can quickly get a loan within a day.

When you have worked so hard during your lifetime, you deserve to lead a relaxed life after retirement. But if you never plan out your finances in the right way, your future can be full of darkness. Well, don’t worry as you can still plan your future correctly.

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