Retirement Living
Retirement Living

Top Retirement Tips

September, 2012 TSG_PTIMG_620x920_people

When you decide to retire, you need to turn the pension funds that you’ve built up into a regular income. The most common way of doing this is to buy an annuity.

If you’re retiring soon, you need to make some big decisions about how to turn your pension savings into a retirement income.

  • Don’t just accept the retirement income – known as an annuity – that your pension company offers you. You could get more from another company.
  • Do mention it if you smoke or have any health complaints – such as diabetes, heart problems and high blood pressure – as these could entitle you a better deal using an enhanced annuity. Only a few specialist companies offer these so your pension company may not be one of them.
  • Do think about your family – If you are the main earner then including an income for your spouse, civil partner or dependents in your annuity can help make sure they are looked after. You need to work out what’s right for you and your family.
  • Don’t leave it to the last minute – it can take months to set up your retirement income so start planning early to make sure you move smoothly from salary to annuity. It won’t happen automatically, as your pension company will wait for you to instruct them.
  • Do your homework – Think about what your potential sources of income in retirement will be. Contact the Pension Service to find out about your entitlement to State Pension, contact your employer if you are a member of a scheme at work and check statements for any personal or stakeholder pensions you have.

If you’ve lost track of any old pensions from previous jobs, the Pension Tracing Service may be able to help you find out what you will be due in your retirement.

Sourced from The Telegraph

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