Are You Saving Enough For Your Retirement?
Posted on April 24, 2017
No matter how old or young you may be, thinking about your future is, unfortunately, inevitable. Everyone should think about retiring, their career path, and whether they are saving enough money for when they finally have to leave their job. And funnily enough, everyone, regardless of age, asks the same questions, which we gathered and answered for you below.
These are the real questions asked by real people, just like you.
How do I know if I am saving enough?
It is not that hard to tell. 47% of workers have a pension, and the life expectancy just keeps growing, meaning more people will start to have a gap in their pensions and will be unable to sustain themselves when their source of income stops flowing in. It is never too late to start making a pension plan, however, and start to calculate how much you’ll need to have when retirement comes around. The best people to talk about that with, would be your Union Rep, your employer, your Bank Manager, or if you have one, your accountant.
How much should I pay into my pension each month?
That is completely up to each individual person. Some employers have a payment plan, allowing you to contribute a minimum amount into your pension monthly. Again, it is important that you make a Pension Plan, so you have a good amount of savings for the day that you need it. Any financial broker can help you with that, or you can use the pension calculator. The recommended target pension is around 2/3 of your payment, however some people can settle for a lower pension, and so pay less into it.
I don’t have the pension plan, should I get one?
The answer to that is, of course! The time will come when the paychecks stop coming through, but your bills won’t. Without a source of income, there will be no way to pay what you owe, and could get you into a lot of financial debt. So, unless you win the lottery, or inherit a lot of sustainable money, your pension will be your main source of income and will keep you financially stable.
How easy is it to access some of your pension fund if you’re over 55?
If you are not in a “company pension”, the rules of the scheme that you’re in, determines whether you can retire before the legal retirement age. However, if you are self-employed, you more than likely have a “Personal Pension” and so you can’t retire before 65. Your pension provider should be able to help if you wish to retire earlier, and can tell you what you’ll need to do, and/or whether there are any circumstances to take into consideration.
Are pensions transferable between jobs?
If you have your own personal pension plan, then you should be able to take it with you to a new job, and keep it. If you earn more, then you should be putting in a higher amount into your pension. You could even ask your employer about their contributions. This would also be a good time to review your pension plan.