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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