Finance Tips for Older Adults

This is a useful article aimed at older adults who want to make their savings go further. These 10 finance tips ranging from pension income to saving money on your bills.

Older people have plenty to think about when it comes to money. Retirement, pensions, insurance, bills – it can all seem overwhelming. But it’s essential that we monitor and manage our money well as we head into later life. Of course, everybody’s circumstances are different, so it’s important to work out a realistic financial plan for your situation. To help you plan for your future, we’ve put together a list of our top 10 finance tips for older people.

1. Plan Your Pension Income

The UK has an ageing population. Both the government and the NHS are struggling to cope with the demand for healthcare and support. Of course, it is impossible to predict the future, but it is likely that private pensions will become more important than ever in the years ahead.

State Pension

Once you retire, you will probably be drawing most of your income from a mix of state and private pensions. The State Pension is a regular income that most people can receive once they reach State Pension age. For several years, State Pension age has been under review. To find out when you will reach State Pension age, use the government calculator here. In order to claim State Pension, you’ll need to have made National Insurance contributions for at least 10 years. You’ll receive a letter from the Pension Service a few months before you reach State Pension age – this will tell you how to claim your pension.

The current State Pension is £179.60 per week, paid every four weeks directly into an account of your choice. However, the amount you actually receive may vary depending on your National Insurance contributions, any additional entitlements, and whether or not you choose to defer taking your pension.

Private Pensions

A private pension is a way for you and your employer to put cash aside (with tax relief!) for your retirement. Most people contribute to private pensions through a workplace scheme but there are other means of doing so, such as a Self-Invested Personal Pension (SIPP).

Remember that it is never too late to start a pension. Ideally, you’ll start saving as early as possible, so the pension has more time to accrue value. However, you shouldn’t rule yourself out, no matter how old you are. The tax incentives of pensions can even benefit those who start them when they retire. By law, your employer must offer a workplace pension scheme. If you are eligible for the scheme, you’ll be enrolled automatically. However, if you don’t wish to enrol for any reason, you can choose to opt out. . . continue reading the full and original article from: Lifeline 24

You might also be interested in reading: Ideas for Passive Income in Retirement

Featured image courtesy of: Sandy Millar on Unsplash