1/ Top up your National Insurance contributions and “buy back” missing years for your state pension
If you do not qualify for the basic state pension, you can buy up to six years additional voluntary National Insurance contributions.

With approximately 65% of women in the UK failing to qualify for the full state pension this is good news. It is not free….each year of contributions costs c£400 and the full six years will cost £2400 but this could result in an extra c£960 per year payable for life.

2/ Find out if you qualify for pension credit
Pension credit guarantees a minimum weekly payment of £130.60 per week for a single person and £202.40 for a couple. These amounts may be more if you are disabled, have caring responsibilities or housing expenses such as mortgage repayments.

If you have made provision for your retirement by saving into a pension plan you may qualify for Savings Credit after the age of 65 and this will increase your retirement income by approximately £20.00 per week for a single person.

You can find out more from the directgov website or by phoning the pension service on 0800 99 1234.

3/ Find lost pension plans
Every little bit makes a difference and even if you only paid in for a short period of time, there is money lying dormant somewhere with your name on it!

You may have paid into a pension plan years ago, perhaps when you first started work for example, and have since forgotten about it. Even a few years contributions will make a difference so if you cannot remember the details, contact the pension tracing service to track this down.

Whether you contributed to a company pension scheme or have lost track of a private pension plan, start tracing your pension now to claim your lost contributions.

4/ Save more now
If you are approaching retirement age, why not put money into a pension plan rather than into a savings account? The tax relief on pension saving and the low interest rates on savings accounts, makes the pension plan a better saving option at the moment.

5/ Transfer your pension
Many people do not realise that they can change pension providers and transfer existing pensions to new funds.

For those who have changed jobs and had a number of occupational pensions throughout their working life, consolidating all these small funds into one better performing plan could be a good idea.

Even if you only have one pension fund, you might find that this could do better for you if moved elsewhere. Contact an independent financial adviser to find out if transferring your existing pension could improve your retirement income.

Take a bow! You should be proud of yourself. You have had many years of working hard and now you have reached retirement age you have the time to do some of the things that you have always wanted.

Whether it is going on a cruise, taking up a new hobby, travelling or simply spending more time with your family, retirement is an opportunity to enjoy yourself. And with people living longer and staying younger, this can be a great time for you.
It has always been up to you to decide how to deal with your own money, so now that you have reached retirement age, why should this be different?

Many people do not realise that they have control over their own retirement income. They simply sign their pension fund over to their pension plan provider after years of paying into the fund. This can be a costly mistake.

When you take out an annuity pension, you hand over the control of your income to an annuity provider. Once you have sold your pension fund to the annuity provider, you have to accept what they give you in return. Worryingly, this contract cannot be changed later.

The rate of income that you will receive will be fixed at the time you start the annuity so if like today, it provides a low rate of interest, your income will not be as high as it could be. Moreover, even if interest rates rise in the future your income will not reflect this improvement.

Today, many people are beginning to realise that there is a range of difference between the rates and terms offered by annuity providers, so are beginning to shop around for the company that provides the best returns and best service.
This is a step in the right direction but there are better alternatives to funding your retirement than by choosing an annuity pension however good it may look.

There are other pension options available that give you the freedom to keep control over your own money yet provide a safe income without locking you into to a long-term contract. In addition, these still leave you the option of buying an annuity at a later date should you want to.

Why not contact an independent financial advisor to find out more about the best way to fund a long and financially secure retirement that leaves you in control of your income.

Many people feel that the retirement income that they would like, is roughly 2/3 of their salary at retirement age. To achieve this, the earlier that you start saving for your pension the more painless it will be.

Although, it is never too late to start saving for your retirement, early pension saving habits will pay dividends in the long run. For people lucky enough to start work with a company that has a company pension plan, saving for a pension becomes part of life, like national insurance contributions and paying taxes.

When you are young, you do not really think about it – it is just another deduction from the wage packet and if you did not save the money for your pension, you would probably just blow it anyway!

As we get nearer to retirement age, the pension becomes more of a looming reality. If you are self-employed or work for a company without an organised or adequate pension scheme, it makes sense to set up a pension plan of your own. You will get tax advantages from your pension saving so take some independant financial advice and find out how you can maximise your pension saving, and catch up if you have missing years.

In general, some living costs can decrease as we get to retirement age. Usually the mortgage has been paid off, children long left home and any major purchases or home improvements have already been made or done.

Reaching retirement age can be a period of life that is very happy and fulfilled as you reap the benefits of all your hard work and get to enjoy increased leisure time and opportunities. Being able to afford to travel, go on holiday and live in comfort is preferable than sitting at home watching daytime TV and worrying about bills in your old age. Sadly, this is the future for many people who have not saved for their retirement.

If you feel that you have left your pension saving too late, do not despair.

If you delay starting a pension then it will take more effort and expense to get to a reasonable level of pension but it can be done. The general advice is, to start saving once you start earning, but if you have not done this yet then act quickly.

Take some professional independent financial advice and find out the best way to fund your retirement.

Sooner is better – when it comes to pensions, but better late than never also applies.

There are a number of ways that you can boost an occupational pension. One is to start drawing your pension later, which is likely to increase the monthly income.

You could also pay extra contributions alongside the pension fund and boost it this way. This is known as an additional voluntary contribution scheme (AVC), can be set up over a period of time, and is measured either in years or by lump sum payments.
Alternatively, you can take a salary sacrifice, if your employer offers it, which diverts part of your pay into pension contributions and has tax and national insurance advantages.

However, you do not have to use a company pension scheme to increase the size of your pension pot, you can start a personal pension or a stakeholder pension plan whenever you like.

The manner in which you invest within pension plans can create more risk and higher returns than others, so if you are not confident in weighing up the equation of risk vs return, you should take financial advice from a qualified, experienced advisor.

A personal pension plan may perform much better than your existing pension plan and also has the advantage in spreading risk because not all your eggs are in the same basket!

Of course, you do not have to use just a pension plan to fund for your retirement…you can invest in Individual Savings accounts (ISAs), or general investments such as investment trust, unit trusts or property.

ISAs are a popular addition to your plans, as they are flexible and the money can be withdrawn at anytime unlike a pension fund. With an ISA, you can save up to £10,200 per year, with funds growing tax free and any future withdrawals allowed without income tax or capital gains tax. However if you already invest up to the annual limit, you may wish to look at unit trusts or other investments although you will not receive the same tax benefits.

Whatever your circumstances, always take professional independent financial advice before you come to any decisions. That way you will find the best way to boost your pension and make the most of your retirement income.

The basic state pension is currently £97.65 for a single person and £156.15 for couples, so if you think this may be enough for you to live on, you do not need to save anything. However, if you do not want to live on such a low level of income, and the state pension will only just about pay for basics, then you will need to save more yourself.

How much you need to save is a bit like asking how long is a piece of string! It is impossible to say because circumstances are different for everyone but the simple rule is that the more you save and the earlier you do it, the higher your retirement income will be.

A report carried out by the Sunday Times revealed that if a 25-year-old invested £200 every month into a pension fund, until the age of 65, the accumulated pension fund would be enough to buy an annuity income of around £11,000, in today’s money. However if the same person did not start saving until they were 30, the retirement income could be reduced by as much as 20%

The earlier you start saving for your pension, the easier financially it should be. The Association of Consulting Actuaries recommends that 25 year olds should start a pension fund and save approximately 15% of their annual income. For 40 year olds who have not yet saved anything, the percentage rises to between 17% and 24% in order to make up for lost time.

Your retirement income does not only depend on the amount you save and for how long. It also depends upon what your pension fund provider offers, and whether they are underperforming or over charging. Pension providers vary so it is important to keep an eye on their performance and change providers if necessary.

The type of fund that your pension monies are invested in will also make a difference to the outcome. Investing your pension fund in equities offers higher returns but carries extra risk in the short term; whereas fixed income products are unlikely to reap the same rewards but are safer.

To get the most out of your pension fund you should contact an independent financial adviser to find out how to save for your retirement in the way that suits you best, depending upon your age and circumstances. That way you can generate the best retirement income from the funds that you have available.

Many women do not have an unbroken employment record and this has affected their pension saving. Even women in full time employment are not saving adequately for their pensions compared with men in the same position, and many women who are self-employed or in part time work have made no provision at all for their retirement.

The truth is that although women will spend longer in retirement than men, many will be forced into a difficult financial situation in old age. Today, 2/3 of pensioners living in poverty are women.

On average, women lag behind men when it comes to saving for a pension, and among working women aged between 50 and 59 who are already contributing to a pension fund, the average sized pension pot is around £37,000 compared to the £54,000 saved by men. Even more worryingly, it is this group who have been hit the hardest by the recession with many women no longer having the money to save. Job losses and cutbacks have resulted in pension saving among women being in decline

Many women in their 40s, 50s and 60s are becoming increasingly worried about their lack of adequate pension saving and worry that it is too late to start. The good news is that it is not too late if you act quickly.

If you are working, even on a part time basis, you may be able to save for your retirement through a company pension plan. If you are self-employed or there is not an available company pension scheme in your workplace, starting a private pension fund would be a sensible option.

If you are running out of time there are pension plans available that offer a better return by higher risk investments. Don’t forget there are tax advantages to setting up a private pension scheme as well.

So is it all doom and gloom for women as they reach retirement age? For many women it could be improved, but you may be better off than you think.

If you have a pension pot already, why not contact an independent financial adviser to find the best way to make your fund work for you. If you are considering an annuity, you may wish to think about deferring this until later while you build up your fund with investment.

If you are thinking about starting saving for your pension but worry that you have left it too late, find out about the options you have available and start planning for your future today. You may be better off than you think.

An annuity is a monthly income for life and up to recently it was a legal requirement that all pension funds had to be converted to an annuity at the age of 75. This law bought in by government legislation, was to make sure that people had the adequate means to pay for their care in later life. However, it did not take into account the wishes of the consumers or the performance of the annuity providers and the interest rates.

Even if you have built up a large pension pot, an annuity pension can work out at a very low income. For example, a man of 65 could swap a £100.000 pension fund for a yearly income of just £4,749 (with annual retail price increases included) or approximately £7,800 per year without RPI increases. Not a good return on such a big investment and by no means the lowest rate offered . In addition, if he should die the day after he opened the annuity, the annuity provider would keep the rest of the fund.

Annuity rates started sliding back in the early 1990s and have halved since then. One reason for this is that people are living much longer today than in previous generations, so the annuity provider will have to fund the lifetime payment for a much longer period. Investing in annuities has become riskier for the provider and this has caused the rate to fall dramatically.

The recent economic crisis has also had a big affect on annuity rates and 2009 saw rates fell to an all time low. The general uncertainty and lack of confidence in gilts (government bonds) and corporate bonds which the annuity companies invest in, have led to low annuity rates as the companies pass on the cost of the risk to the customer. In this economic climate the annuity rate is not predicted to rise in the near future.

So where does all this leave the customer? Annuities offer poor value at the moment and other methods of financing your retirement that do not lock you in to a long-term contract at a low rate would be a safer option. And after all, if the annuity rate rises you can always buy later when the market is more favourable.

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Annuities are not a new invention and have been around since Roman times so the system obviously works in principle. You save for your retirement and pay your pension fund to an annuity provider. In return, they provide you with a regular income as a pension. This allows the annuity consumer to have a secure monthly payment that will continue to the end of their life.

For some people this system works well. However, for the annuity provider it works even better. Without being morbid, it is likely that you will die before you have used up anywhere near the money you have deposited into your annuity fund. This means that on your death, your money will pass not to your family and loved ones, but to the annuity provider.

This is not random bad luck. Your annuity provider will factor in all your personal information and make a gamble as to your longevity. Of course, as with all gambles, there is the occasional unexpected result, but like gambling, the only true winner is the bookmaker in this case the annuity provider. The odds of you dying while there is plenty left in the annuity pot are stacked in the annuity provider’s favour. In addition, once you have gone the annuity provider benefits, and not your family.

Another factor to consider when thinking about an annuity is the annuity market rate. The annuity rate is low at the moment and expert opinion is that it seems likely to continue that way. This affects your future income because your rate is fixed at the time you buy your annuity.

With the recent abolition of the rule that required all pension plans to be converted to annuities at the age of 75, consumers are now free to look for alternative means of funding their retirement. You do not have to exchange your pension plan for an annuity.

Many investments and plans offer a much better return for investment without forcing you to sell your pension pot. By seeking independent financial advice, you will be able to find the best way to provide for your retirement and still keep control over your savings.

After all, you have had years of working and paying for your pension so it is important that you now make the right choices about providing for your retirement. Take the first step, contact an independent financial adviser, and find out how you can enjoy a comfortable retirement and still preserve your fund for your family and not the annuity provider.

With increased life expectancy as people live longer, your retirement could make up a third of your life. When you retire, you will still have to pay bills and for many people retirement is a chance to enjoy leisure time after years of the routine of the working day. Making the right decisions now will enable you to plan for the future and enjoy your retirement.

Let’s face it, thinking about your pension is not the most exciting thing in the world and many people simply choose to ignore the subject completely or bury their heads in the sand. However the nearer you get to retirement age, the more pressing the subject becomes.

There are a number of situations that you may find yourself in as you approach retirement: For example, you may already have a company pension in place but do not know how much you can expect to earn from it. You may have been made redundant and although you paid into the pension fund, you are no longer with the company. Likewise, you may have paid into a pension fund in the past and have simply lost track of it.

Finding out about your annuity options and how to make the most of your pension investment could make a substantial difference to your income.

If you are one of the large number of people, who have not yet made any provision for the future you may feel that it is now too late. Many people worry that they have left it too late to benefit from starting a pension or changing their pension plan but even starting a pension plan later in life will help your future retirement.

There are many different factors that can affect your future pension earnings and seeking professional advice will help you work out what is the best course of action to take for you and your future.

The good news is that it is not too late. Even if you are approaching retirement age, by taking action now and seeking some independent financial advice, you will be able to maximise your pension situation and plan for your retirement.

Before you decide, it is important that you consider all the options that you have available. Buying an annuity is a big decision that will affect the rest of your life and once it is done there is no going back!

An annuity is a regular income that is guaranteed for life in exchange for your pension fund – the money that you have saved over the years for your retirement. Put simply, you buy the annuity with your pension savings, swapping the lump sum for a guaranteed regular payment. However, once you have effectively sold your pension fund to the annuity provider, you cease to have control over the money. You cannot use the money for an unforeseen event or leave any money remaining in your pension savings to your descendents because it no longer belongs to you. No wonder people put this decision off!

Annuity providers offer different rates and returns for identical factors so it is essential that you seek independent financial advice before committing to buy should you decide to take this course of action.

When you take out an annuity, your income will be fixed every year. Annuity rates have fallen in the last 15 years and a report in the Daily Telegraph points out that twenty years ago a pension pot of £100,000 that once would have secured a fixed income of £15,600 pa – today would only reach £5,860 pa.

Because of this, many people are putting off buying an annuity until the rates are more favourable. Other consumers are looking for a solution that offers them a return for their investment but is flexible and leaves them in control.

One alternative to buying an annuity is to draw down an income from your pension, via a process called Unsecured Income. This will allow you to take money directly from your pension fund but still leaves you with the option of buying an annuity at a later date when you might need it. Consult an independent financial advisor to find the best way to benefit from drawing down your pension.

If you are over age 77, another alternative may be to put your pension fund into an Alternatively Secured Pension (ASP). This fund remains invested invests your pension, potentially gaining growth capital and interest and allows you to draw an income from the ASP fund. You can keep control over your savings and still use the fund to buy an annuity at a later date.

Before you decide, it is important to consult an a pension specialist independent financial adviser for the best way that your pension can work for you. After all you have spent a long time working for your pension!

Want advice on annuities? We can help so give us a call!