State pension may be key for retirement – five top tips to help Britons in later life | Personal Finance | Finance
It can be challenging to know where to begin when it comes to retirement, but many will have big dreams and plans. To help Britons get on the right track, Express.co.uk spoke to Suzanne Williams, chartered financial planner at Old Mill.
She offered her top tips on how to prepare for retirement.
Ms Williams stressed the more prepared a person is for retirement, the easier it will be – both financially and emotionally.
Firstly, Ms Williams said, thinking about when a person wants to retire is key – particularly as there is no fixed age by which to do so.
However, what is important is that individuals are in a secure financial position and can fund their lifestyle for the remainder of their time.
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Costs which are no longer applicable in retirement such as commuting, pension contributions and mortgage repayments can be taken away.
Ms Williams added: “Remember to add in an emergency pot of money to deal with those unexpected costs.
“This could be home repairs, or appliances breaking down, for example.”
Britons will also need to gain clarity on their financial position, to ensure they are best placed for their retirement.
Ms Williams explained: “List out your pensions, savings and investments you have in a spreadsheet or on a piece of paper.
“It may be easy to see the income some of these will pay you – some company pension schemes will give you a guaranteed income, or you may get rental income from buy to let property for instance.
“Most people will also receive a pension from the Government, currently when they reach the age of 66 although this is going to increase to age 67 in the next few years.
“The full new state pension is currently £185.15 per week – that’s £9,627 a year, or potentially over £19,000 for a couple.”
Finally, Ms Williams stressed people should never be afraid to ask for help if they need it in securing their financial future.
In some cases, this may involve consulting a financial planner as these experts can often offer tailored advice to suit personal circumstances.
Others may wish to make use of the Government service Pension Wise, or organisations such as Citizens Advice or Money Helper.
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