How to Make your Retirement Happy and Struggle-free?

What have you to say on today’s economic circumstances? Certainly, not every one of you is impressed and being benefitted under the present shape of economy. The imbalanced financial life has forced many people to cut down on expenses and live a poor lifestyle. And, when you talk of retirement, the matter has become all the more worse.

It’s not always a cake walk to save money. After footing various bills, you are left with only a meagre sum of money. You ought to be disciplined in your approach towards saving money. Your foresightedness and some scarification will only help in accumulation of large wealth.

It becomes easy to save, if you are privileged with hefty pay-checks but not all are so fortunate. The unfortunate people need to save out of whatever sum of money they earn. When it comes about retirement, savings become utmost necessity, as you can’t depend these days on state pension and social security.

You will like to know some ways to save for retirement without feeling pain in your pocket. Here are a few ways that act behind the scene:

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 Sign in to the retirement schemes offered by your company

You need to ensure whether your company offers a pension scheme. If it does so, sign in to it as soon as possible. These schemes are for your own good and help a lot in long run. You might have to make certain compromises with your income but at the end of day, you come out as winner. Also, it’s beneficial to start contributing from early on.

Do not ignore previous income from old employer

You must have worked into more than one organisation by now. Check with your previous employers whether you have missed the earned retirement credits. It’s common to forget or ignore the old retirement plans and leave it unattended. Do not hesitate in asking for your credits and get it transferred into IRA account as soon as you get hold of it.

Buy a House

As soon as you enter into the working age and start earning, keep your focus on buying a house. It will help you in long term, as you can withdraw equity from your house after attaining the age of 55 years. Equity release offers you several flexible plans to benefit you the most.

Gain from inheritance

Inheritance gained from predecessors can make you wealthy. If they have left larger inheritance, you are on for a comfortable retirement, though smaller inheritance can also benefit you a lot. Make sure to add at least 20 to 30 percent of inheritance to your retirement fund. Same can be done with the bonus money.

Well-bonding with family and friends help in long run

Your family and friends are the non-monetary assets and stand with you through thick and thin. It’s good to bong well with them, as they are the ones responsible to take care of you in the retirement.

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If you mend your ways with these ideas, your life will be happier forever.

Claim a Right Mortgage Plan to Live Happily in Retirement

When Dr Ros Altman, a Governor of London School of Economics, put her views on equity release interest rates, little she knew of the reactions from Equity Release Council, the governing body of equity release scheme. The council has vehemently argued against the theories of leading economist who had criticised the much popular scheme for high interest rates charged to release equity from the house.

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It’s true that equity release charges huge interests on its schemes, almost double the standard mortgages’ interest rates. It charges above than 7 percent per annum on most of the schemes. However, there is some flexibility provided to people aged over 75 years. Such people can avail equity release scheme at 5 percent interest rate. Added benefits are provided in the form of no interest for lifetime or till their stay in house.

A theory projected by equity release naysayers suggest that at 5 percent interest rates, principal amount gets doubled in 15 years while it takes almost 10 years for the same principal amount to double up at the 7 percent interest rates.

Dr Altman is concerned of senior citizens not getting exact value on their properties. Their entire savings get used up in building the house and at the end of the day, they feel cheated.

However, Nigel Waterson, Chairman of Equity Release Council, didn’t take it well and brought his opinion on the desk. According to Waterson, the naysayers should at first calculate the positives and then weigh down the scheme. He points out the positives of equity release scheme that are fairly up with what other mortgage policies have to offer to senior citizens.

The certified members of ERC offer equity release plans at lower interest rate and the referred case by Dr Altman might have not been availed from the certified member.

Besides offering the product at lower equity release interest rates, equity release safeguards various interests and benefits of senior citizens. It guarantees that even in the worst case scenarios, customers will not have negative equity on their house. Senior citizens are also provided the right to retain ownership of house for entire lifetime.

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Waterson describes equity release as a practical option, in present times, to fund own retirement. It’s a fact that most retirees in UK are living financially constrained lifestyle and equity release is a right way to generate income from the house. If you go for downsizing the house, there might be physical and emotional bearings on the life of retirees, but with equity release you are in win-win situation.

The Chairman defends equity release scheme by the flexibility it offers when the occupant decides to move to other property or shift the plan to any other property of theirs. In the ideal world, you may not have to resort to such means but under the prevalent circumstances, you only need fair deals for a happy and financially rich retirement.

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How to plan retirement from early on?

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Leading financial magazines reveal that Brits are not prepared for retirement. According to a recent research, nearly half of the working population in the UK are saving nothing for the golden phase of their life. Majority of the people prefer to work until later phase of their life and also, there is an upsurge in the number of people, who work in the retirement as well.

Certainly, that’s a disheartening figure but there are also few wise men that have planned out everything to survive when the boat sinks in. We bring you the story directly from horse’s mouth. Take an inspiration from them and start mending your ways before it’s too late.

Kevin is a 29 year old IT professional and has saved almost £41,500 in 401(k) and other retirement plan.

How Kevin did it: I started contributing in the employer sponsored retirement plan as soon as I got hired for my first job. I made it sure that 4 percent of my salary is contributed into retirement fund. My mom had fallout due to very reason that she didn’t save for retirement and taking a leaf out from her book, I started making my contribution from early on.

After leaving my first company, I joined another on hiked salary but didn’t make contribution to the pension pot, my employer did. Into my current organisation, I am receiving handsome salary package and making a contribution of 6 percent into the pension fund.

However, Andrew Brown has another story to tell. He is 40 years of age, a divorcee and working in the finance sector. He bought a house recently with his savings and look at this property as his biggest asset.

How Andrew did it: I was reluctant to make contribution in the pension fund from early on. But I realised its importance sooner but dealt it differently. I bought a house of own recently with my entire savings and look up to it for funding my retirement needs.

You might wonder that how my home will take care of retirement, to let you know that releasing equity from home is the latest trend in the UK and offers several time tested benefits to the retired homeowners. I have a firm faith on the plan and believe that my house will take care of retirement needs of mine.

Similar to Andrew, there are many working professional in the UK mull on equity release schemes to fund their retirement life.

Do you know?

•   Equity release offers right to retain the ownership of house for lifetime.
•  Equity release money is free from all the tax forms and you are independent to make use of money as per your wishes.
•   Equity release guarantees no negative equity on your house.
•   There is no need to pay monthly interest rates.
•   Majority of the retired homeowners in the UK trust on equity release scheme to look after their retirement years.

 

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Into the financial ignominy: Release equity from your property

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If you are under fatigue or constant urge to live in the solitude has over-gripped you, symptoms show that you suffering from the poverty disease. No need to panic, there are many person of same age as yours, who are living their life in the same way. However, some have overcome the dastard situations whereas few are still reeling under the pain. 

The curable disease has an able medicine in the form of assets. Yes, your assets can be a vital factor in making your life as comfortable as earlier. Have you ever given a thought on what compels retired persons to live a life in financial ignominy? 

Certainly, pension plans and unfavourable financial plans are the correct answers but there is more into it, lack of knowledge might be a leading factor to elongate your sufferings. If you would have gone by the proper retirement planning, in all the possibility, you could have eluded this phase from your life. 

But, still you have a chance to correct your previous wrong-doings. With equity release schemes, you can start a new life afresh. For that, you need to be at least 55 years old and own a property in the UK. 

Have you still got an idea? Yes, equity release is all about mortgaging your property, but unlike other types of mortgage plans, where you need to vacate the house prior to third party possession. Equity release offers you several unique and unprecedented benefits, some of which are

·         Right to retain the ownership of house

·         No monthly re-payments

·         Tax free money

·         No tab on the way to use the money

·         Guarantee of no negative equity

·         Chance to live inheritance

·         Flexible products at affordable interest rate

·         Well regulated products

Are you baffled? If yes, get in touch with equity release advisors to get complete idea on the equity release schemes. As they are experts on this matter, so avail you the exact opinions regarding various schemes.

Financial advisors offer to calculate the worth of your property on the equity release calculator. Calculating your age and value of property, equity release advisors let you know of the equity release UK plans best suited to you. 

Finding a good service provider is tough in the market, as there are more than 250 service providers available in the equity release industry. A reputed financial adviser will make you abreast with the virtues of certain services providers, clinching a beneficial deal with them depends entirely on your will.

Grab an Opportunity to Live a Financially Contained Post Retirement Life

W

ith a constant decline in the pension money, retired persons are living a sub-standard life. Inflation and further economic crisis is adding more to their worries. A pre-negotiated retirement plan can help them a lot in living a financially comfortable life. They, who are lagging behind on this front might bear the brunt of economic instability in the country but the doors are not completely shut on them.

There are primarily four types of retirement plans, which include government-sponsored plans, personal plans, annuities and employer-sponsored plans. 

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·       Government-sponsored plans: Federal provides you different types of benefits; social security plan is one of the largest. 

·        Personal plans: Individual Retirement Agreement is the most popular among all the personal plans. 

·       Annuities: The fixed and variable annuities are provided by insurance companies.

·       Employer-sponsored plans: When you are part of an organisation, employers provide you certain plans, which can prove significant after retirement. 

Individual Retirement Agreement

A large number of people go for Individual Retirement Agreement/Account, which can prove as an exceptional supplement to your retirement gains.

The traditional IRA is most likely to be tax deductible and the funds in the scheme grow according to the tax-deferred basis. According to the regulations in the IRA, you do not have to pay taxes until your assets are there. Once you decide to withdraw from IRA, usually happens post retirement, taxes are applicable. You might have to pay lower taxes, owing to your entry into lower tax bracket after the retirement. 

401 (k) plans

401 (k) plans can be availed when you are working with certain organisations. Under the plan, a fixed portion of your salary is cut and gets deposited in the individual accounts.

Key features of 401 (k) plans

·       Salary deferrals are free from all the taxes

·        Sometimes, employers, too, contribute to employee’s accounts

·       However, you may be taxed with total earnings at the retirement

Government entitled benefits

There are some retirement benefits being offered by the government. Into a recent development federal has announced that from 2017, state is liable to pay for the social care fees, exceeding £75,000. Several other benefits are also imparted to the retired citizens, like Social security, Medicare, etc.

Equity release schemes

Equity release is an option with retired people or at least 55 years old citizens, who can free the locked in value from their property. There are several equity release providers, who calculate the value of your property with equity release calculator and lend you loans against your house. 

So, even if, you are living in a financially subdued world, there are various ways to fund your retirement. Each of the aforementioned retirement plans is advantageous, but you need to grasp it with a positive approach and after thorough diligence.