Grab an Opportunity to Live a Financially Contained Post Retirement Life

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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. 

 

Radiate Your Love for Mom by Gifting Her Credible Retirement Plan on Mother’s Day

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other holds an important place in everybody’s life. She means a lot in your life. The day to celebrate unique bonding is round the corner, Mother’s day is round the corner and what have you planned out for her?

Nothing could be as better a gift other than a retirement plan for your mother. The woman has never ever asked anything from you, it’s the right time to realise her of significance in your life.

According to some findings from a leading bank, retired persons in Britain are the worst prepared lot when it comes about post retirement finances. A large chunk of them will run short of savings before midway into their retirement.

There have been a few studies, which show that women lag behind in planning their retirement, 50 percent to men’s 61 percent.  

Do you want to see your mom meeting the same fate as others of her age? Certainly not, after all, it’s you, who is supposed to take care of her in later phase of her life. So, why not start preparation now onwards.

All those years, into her working life, she saved the money to fund your education. It’s time to make up for that by getting a suitable financial plan to cover entire life of hers.

Various insurance companies have come up with several retirement policies. Several nursing and care schemes have been launched in the recent times.

Several financial plans to take care of your mom in her later years

 

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If your mom is still working, encourage her to get the benefits of 401 (k) plans. This plan is facilitated by employers, under which employees can make payments on a post tax or pre-tax basis by salary deferral.

By asking for 401 (k) plans, she can earn free money from the employers and there is every chance of tax reduction on her salary amount.

To the mom in her 50s, a long term care insurance policy can secure her life. She can turn to the insurance policy as and when the needs arise.

If she has not yet asked for federal social security, take the job in your hand to enlist her name in the social security beneficiaries. There are several Medicare and other policies being supplemented by the government to retired citizens in the country.

Besides all these plans, there are some private insurance policies covering the entire lifespan of elderly persons. You can go through each and every plan and opt for one suitable scheme to secure your mom’s future. 

Last but not the least, gift the most important person in your life, a house. She can always turn to the house to fund her old age, when you are far away from her.