Planning for retirement can be complicated, as anyone approaching the end of their working life will tell you. However, navigating the myriad of choices, both financially and socially, doesn’t have to be such an enigma. Here are a few tips to help you avoid common bad habits that retirees often fall into:
1. Spending your pension fund money
Yes, that’s right!. If you delay spending your pension and spend other available cash and investments first, you could keep your money safe from HMRC, while it continues to grow tax free. . Not spending your pension fund money until you have to may also help the beneficiaries of your estate avoid a large inheritance tax bill.
2. Taking the full brunt of inheritance tax
Inheritance tax can cost your loved ones vast sums when you pass away. There are plenty of ways to protect them from losing a large portion of your estate. Strategies such as making gifts or leaving assets to your spouse and /or in trust are effective ways to avoid the tax.
3. Thinking property is the only asset worth having
Property can be a valuable source of retirement revenue, but it’s not the only way to create more income. Property can often incur maintenance expenses for landlords and take up time to resolve that could be spent making the most out of your retirement. However, there are various ways and advantages of holding property within your pension fund.
4. Not taking advantage of the discounts
There is an absolute plethora of discounts available to retirees over a certain age. This ranges from discounts on train fares to reduced prices of cinema tickets, store cards, National Trust, English Heritage etc. . We recommend that all pensioners takes full advantage of these discounts as every penny saved provides more financial security for yourself and your loved ones.
5. Buying into scams
When you retire, it seems that all kinds of people come crawling out of the woodwork to give you a “great” investment opportunity or insurance policy. Tactics can include contact out of the blue with promises of high / guaranteed returns and pressure to act quickly. The pensions regulator has a comprehensive pensions scam guide that’s definitely worth a read.
6. Failing to have a plan
Many retirees have multiple avenues of income to provide for them during retirement. Making the most out of those streams of revenue is key to a stress free retirement, as unwise investment or poor planning can lead to unnecessary worries. We can help you build your plan that’ll take away the worries and let you focus on enjoying your well-earned retirement.
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