A collaborative post, primarily for our readers in the UK
Pensions are a massive talking point in the UK right now and many of us are wondering how we can generate enough capital to fund our retirement. It's certainly a tough question to answer, but one you don't want to ignore - and taking small steps every day can make a real difference as the years roll by.
Today we're looking at some little economies you can work into your daily life and enjoy a bigger pension when retirement comes around.
Make sure you're entitled to the full state pension
While it's not a good idea to rely on the state pension alone, you still want to be sure you're entitled to it, in full, when the time comes. The state pension is currently £115.95 a week, and it will rise to £144-£155 after April 2021, which is hardly a figure you want to pass up.
To get the full state pension you need to clock 30 years of national insurance payments, but your entitlement will be slashed if you fall short.
Manage your pensions
While pensions become increasingly complex we have a range of technologies at our fingertips to make financial planning and management easier. Your first task is to figure out how much retirement is going to cost you - and you can do this by using an online retirement calculator, like this one from Retiready.
Once you have a figure in mind it's time to start getting your finances in order, and smartphones are emerging as a top tool for building bigger pensions. A range of apps give you control over your finances at a fingertip, allowing you to track and improve the performance of your pensions. This daily involvement with your retirement funds gives you a stronger incentive to manage your finances and watch your savings grow.
Make pensions, financial independence a family topic
It's becoming increasingly common for 40-60 year olds in the UK to financially support both their parents and children at the same time, so you want to have conversations about your retirement planning early and often—and include the whole family.
Many of us are starting families later in life, while our parents live longer and the economy has made things difficult for everyone over the last decade. So make finances a family topic, because three generations doing everything they can to stay financially independent will make a huge difference.
Consider working longer
Okay, this may not sound very appealing, but the best thing you can do each day to boost your pension is work. In fact, five more years of work could boost your retirement income by a third, although you don't necessarily have to work full time.
Part time hours could bring in enough to delay dipping into your pension funds and, if you're a while away from retirement, why not think about alternative sources of income? Many people work online now so think about any digital skills you can use or learn to earn money independently - just keep it all above board!
As pensions become a trickier topic for all of us, the key to securing financial security in later life is early planning. Now is the time to start thinking seriously about pensions and daily habits like the ones we have covered today could help you enjoy a fuller life once you retire.
Image credit is ELDR.com.
Disclaimer: This is a sponsored post and predominately for my readers in the UK!
Have a wonderful Wednesday!