What will your perfect retirement look like?
If you have spent the majority of your adult life working, the idea of having nothing to do can sound blissful, and it probably will be for the first few weeks. However, for many, that can become the most difficult part, so it's important to have things in place to fill your time.
It is important to remain active, both physically and mentally, if you want to be able to enjoy those post-work years. So how will you keep yourself occupied? Maybe you want to volunteer, focus on your hobbies or travel?
There are plenty of places for you to get ideas, but if you need a starting point or inspiration, here are a few websites that you might find useful:
- Planning and preparing for retirement – Age UK
- Information guides and factsheets - Age UK
- Information and support - British Heart Foundation
- Volunteering a key part of a happy retirement - Volunteering Matters UK
Thinking about the money
Knowing how much income you'll have is essential when taking control of your retirement.
Knowing what you want to do with your free time is great, but the question is, "Can you afford it?" The Pensions and Lifetime Savings Association (PLSA) published UK Retirement Living Standards to give people an idea of what retirement will cost so people know what to aim for.
They estimate that a couple would need a minimum income of £16,700 (£10,900 for a single person) per year to cover basic living expenses and low-cost social and leisure activities. For a lifestyle that includes an annual foreign holiday and allows you to eat out a few times a month, the PLSA estimate an income of £30,600 for couples or £20,800 for a single person.
Visit the Retirement Living Standards website for more information about the expected cost of your retirement, depending on what you hope to do after you stop working.
To help you understand how much you might need in retirement, visit the MoneyHelper service for free retirement budget planning resources.
If you haven't started taking your pension yet
If you are still a member of the Plan, you will receive a statement each year estimating your pension at your retirement age.
Suppose you are no longer an active member of the Plan. In that case, you should have received a statement shortly after you left estimating what your pension would be at retirement. If you didn't receive this or misplaced it, ask the administrators for a copy.
Your State Pension
As well as the income you receive from the scheme, you may also be entitled to a State Pension, depending on what National Insurance contributions you have paid. To get an estimate of what your State Pension will be, you can:
- Check your State Pension online
- Call the Pensions Service Centre on 0800 731 0175
- Submit a BR19 form online
Track down your old pensions
If you've worked at several places over your lifetime, you may have old pensions that you have forgotten about or lost the contact information for.
The government's Pension Tracing Service can help you track down any old or lost pensions for free.
Your retirement is personal
If you're uncertain about any aspect of your retirement planning, you may wish to speak with an independent financial adviser to discuss your specific situation. For details of a local adviser, you can visit the MoneyHelper website. You should always check an adviser's charges and specialities before appointing them.
Remember, it's never too early to start planning for your retirement.
