Published on July 16th, 2013 | by Pete0
Saving money for retirement
Retirement is an important stage in anyone’s life and, since it’s typically a time when there is little or no work being done, it is one that is arguably the most difficult on your financial situation.
To this end, here is a quick look at three of the most common ways of supporting yourself financially during retirement: pension, savings and annuities. This will take a closer look at each but you can find out more at Moneyvista.com.
This is the one most people are arguably familiar with. The state pension can be complicated, requiring various factors to figure out although recent months have seen a larger push towards work-based pensions.
In any case, pensions can prove useful but they will offer a limited form of income per month or week when in retirement. This is something you should look into, to ensure it’s something you find suitable. This can also be done in conjunction with savings and annuities, of course; you’re not specifically tied down to just one option.
Savings work in a similar fashion to a pension, only it’s all done by you. Whereas a work-based pension would see both you and your employer put into a retirement pot, savings simply mean you can save additional money yourself. How you spend this is up to you but if you try to stretch it across your retirement it will have a similarly restricted result as a pension. However, it can make good use of money saved alongside another pension or used to create an annuity.
An annuity is, simply put, where you trade in a lump sum of money in exchange for a regular payout through your retirement. You can typically trade in part of your pension to achieve this. The extent of the duration for these payouts will also vary although a level or lifetime annuity, however, will last for the rest of your life. You can look online for more information on annuities explained.
This is just a brief look at three common ways to help your retirement but it should hopefully highlight the choices open to you and your money.