Best Ways To Getting the Most out of Your Pension

Best Ways To Getting the Most out of Your Pension

Thanks to the introduction of auto enrolment in 2012 more people in the UK are saving into a pension scheme than ever before. But, did you know that up to 35% of UK adults still don’t have a pension? Pensions can seem complicated, but there are some simple things you can do to plan for the retirement you’d like.

Why Save for a Pension?

Although many of us could be eligible for a state pension, this will only cover basic needs. To have the standard of living you desire in retirement it’s a good idea to start saving into a pension scheme. Plus, pension schemes will also come with some tax relief, so you’ll put more away for a rainy day than if you depend on savings alone.

Start Saving Early

Even if you’re in your 50s you can still develop a good pension pot, but it’s going to be larger if you start at 30 or 40 (or before!).

If you have a pension income of £25-30k you are likely to live 1.5 years longer than someone with £10-15k.

Do your Maths

Have a think about how much money you will need to have when you retire. What expenses will you need to cover every week? Are there any hobbies you’d like to pursue or carry on with?

It’s also a good idea to try to pay off your debts before you enter retirement.

Then, work out how much of these costs will be covered by your State Pension. But be wary that this has changed in recent years.

Have a look at how much you pay into your pension each month, plus any accounts you may have from previous jobs. Likewise include any savings accounts, ISAs or investments that will contribute towards your income. You can work out your potential retirement income on the Money Advice Service’s Pension Calculator and see if you’re on track to achieve your goal.

Put more Away

If you’re in an auto-enrolment pension scheme that’s an excellent start. Current employee contributions are set at 3% minimum which will rise to 5% next year and should give a good basic level of income. Depending on your age and how much you earn you may want to contribute more than this to boost your earnings in retirement. If you get a pay rise or a bonus, consider contributing some to your pension pot. You will get tax relief on your contribution and – on some workplace schemes – your employer may increase their contribution too.

Treasure your Final Salary Pensions

If you are lucky enough to have a final salary pension or defined benefits scheme – one that pays out a fixed amount each month depending on how long you worked for an organisation – then it’s normally a good idea to keep them. They will provide you a guaranteed income and do not come with the financial risk of other schemes.

Avoid the Temptation to dip in Early

Your pension could be a salvation in later life, so try to avoid drawing out of it early, even if you’re still young. What you withdraw could take years to build up again.

If you’re Self-Employed

Although the number of self-employed people in the UK is growing, fewer and fewer are saving into pensions. Some plan to sell their business to fund retirement, but if this doesn’t work out as planned they can be left without financial security in later life. Others may put it off because of the cost. However, there are schemes out there to help self-employed people save:

  • if you are a self-employed person or single person director, you can use the National Employment Savings Trust (Nest). This is a low-cost government pension plan set up to help employers who don’t have a workplace scheme
  • If you are saving for a pension, you can reclaim some tax relief via your self-assessment tax return. If you’ve forgotten to do this, you can still claim tax relief from the past three years

Speak to your pension adviser for more information.

Money Management Tips For Using Payday Loans

Money Management Tips For Using Payday Loans

Are you in desperate need of some money until your next paycheck? If you answered yes, then a payday loan may be for you. However, before committing to a payday loan, it is important that you are aware of what one is all about. This article is going to give you the information you need to know before signing on for a payday loan.

One key tip for anyone looking to take out a payday loan is not to accept the first offer you get. Payday loans are not all the same and while they generally have horrible interest rates, there are some that are better than others. See what types of offers you can get and then choose the best one.

Many payday loan lenders will advertise that they will not reject your application due to your credit score. Many times, this is right. However, be sure to look into the amount of interest, they are charging you. The interest rates will vary according to your credit score. If your credit score is bad, get ready for a higher interest rate.

The funds you are able to obtain through payday loans can vary significantly. It’ll depend on how much income you make. Lenders determine your earnings and establish your credit limit for borrowing purposes. You must understand this when considering applying with a payday lender.

Only work with a payday lender that has the ability to do an instant loan approval. If they aren’t able to approve you quickly, chances are they are not up to date with the latest technology and should be avoided.

When taking out a pay day loan, try to find a lender that offers direct deposits. This will give you the funds immediately, without delay. In addition to the convenience factor, it means you don’t have to walk around with a pocket full of someone else’s money.

Avoid taking out a payday loan unless it is really an emergency. The amount that you pay in interest is very large on these types of loans, so it is not worth it if you are getting one for an everyday reason. Get a bank loan if it is something that can wait for a while.

Check your credit history before you look for a payday loan. Consumers with a healthy credit history will be able to get more favorable interest rates and terms of repayment. If your credit history is in poor shape, you can expect to pay interest rates that are higher, and you may not be eligible for a longer loan term.

Read all the fine print on anything you read, sign, or might sign at a payday lender. Ask questions about anything you do not understand. Assess the confidence of the answers given by the employees. Some simply go through the motions all day, and were trained by someone doing the same. They might not know all the fine print themselves. Never hesitate to call their toll-free customer service number, from inside the store to connect to someone with answers.

Before borrowing from a payday lender, be sure that the company is licensed to do business in your state. The laws for getting a loan differ for each state. The lender you choose should be licensed in your home state.

If you are self employed and seeking a payday loan, fear not because they are still available to you. Since you probably won’t have a pay stub to show proof of employment. Your best bet is to bring a copy of your tax return as proof. Most lenders will still give you a loan.

If you have a payday loan pending or in progress, refrain from taking out another. Even if you really feel you need a loan, consider your history and realize this may not be a wise decision.

Avoid taking out more than one payday loan at a time. It is illegal to take out more than one payday loan against the same paycheck. Another problem is, the inability to pay back several different loans from various lenders, from a single paycheck. If you cannot repay the loan on time, the fees, and interest continue to increase.

The lender you apply with has complete access to your banking information, so be sure to choose a reputable lender. You must be aware of this as well as the dangers involved with it. Make sure that you deal with a reputable lender who will not corrupt this information.

Do not let the opportunity of getting cash quickly keep you from making a wise decision. Too many people approach payday loans as an easy solution to cover their bills and end up in debt. You need to think about your decision carefully and make sure you can afford to pay back your loan.

Be sure to exhaust all other loan options before applying for a payday advance. Think about asking family, friends or financial institutions for assistance instead. Consider all finance charges when deciding on a payday loan.

Those of you looking to take out a payday loan would be wise to choose a lender that has a no-hassle policy with regards to checks bouncing. Some lenders will have a hefty penalty fee for a bounced check while others have no penalty at all so make sure you choose the right one.

Find out what a payday lender needs to know about you before, you try to borrow money. Most lenders want to know about your current job, and expect you to have been there for at least six months with a regular paycheck. You must also be able to show an address that you have lived at for more than three months. Provide your age, and citizenship details. Additionally, you must be able to provide information on a bank account that, you have had open for at least six months.

As It was mentioned at the beginning of this article, a payday loan may be what you need if you are currently short on funds. However, make sure that you are knowledgeable about payday loans are really about. This article is meant to guide you in making wise payday loan choices.