How To Boost Your Pension
How to boost your pension: Paul Lewis, financial expert and journalist, shows VideoJug users the many things you can do to get the most from your pension, from financial advisors to sensible banking. Here are all the tips to help you be secure in your finances when you retire.
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Step 1:
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Equity release
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If you live in a valuable house and the mortgage is paid off, you may want to think about releasing some of your home's value in order to boost your income. For further details, please watch "How to release equity from your home"
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Step 2:
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Use your skills & resources
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Retirement is a great time to recall all the things you can do, all those skills you have picked up throughout your life. Write all these things down, essentially making a C.V. for yourself, and consider what hobbies could potentially be turned into a money making venture. Perhaps some buying and selling, managing someone's accounts, or running a small bakery.
Remember, you must always register with HM Revenue and Customs.
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Step 3:
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Make your money work for you
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When it comes to retiring, most people will have some money stored up in some form, so it is important to make this work for you. Don't put it in a current account or keep it in cash. Make sure you get the right high interest account, and you could be earning as much as 6% interest every year.
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Step 4:
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Buying an annuity
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An annuity involves giving a lump sum to an insurance company in exchange for them giving you money in return every year. The company keep your original sum when you die, so the benefits depend on how long you live after the initial payment. You can opt for a flat income or one that rises with inflation, but a flat one is generally considered the safest and most worth while.
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Step 5:
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Seek financial advice
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Get your advice from someone registered with the financial services authority. You should also make sure that they are an independent advisor, as this means they must study the entire market for you.
Always pay for the advice with a fee rather than on commission, as the latter has the potential to encourage the advisor to provide biased advice.
Always ask what their qualifications are, and get one that suits your needs.