Planning for retirement

For many people retirement brings its own set of stress and considerations. Do you have enough to live comfortably and meet you outgoings, heat your home, eat well and pursue and enjoyable lifestyle.

It goes without saying that if you are happy to continue working and you are fit and healthy the later you retire and take any private pensions the better your lifestyle will be when you are ready or have to stop working.

The full state pension is currently £221.20 a week (11,502.40 a year)

The new State Pension increases each year by whichever is the highest:

• earnings – the average percentage growth in wages (in Great Britain)

• prices – the percentage growth in prices in the UK measured by the Consumer Prices Index (CPI)

• 2.5%

If you have a protected payment, it increases each year in line with the CPI.

Although deferring your state pension increases the amount you receive when you do take it, the amount you do not receive can take so many years to recoup what you have deferred that it is not worth it. It is best to take some financial advice. There are presentations on UTube that address this. Here are a couple.

A general overview

https://youtu.be/qrVur_6Hasg?si=mqb70D-SEnC1TEHP

The advice against deferring

https://youtu.be/UxecUeip5Ak?si=L_DZFLEaYaVH5yHS

The Pensions and Lifetime Savings Association suggests for a single person household to live a moderate lifestyle they would need £31,300 each year, increasing to £43,100 for a two-person household.

For a single person household, this includes costs such as:

• Home maintenance and decorating

• £55 on weekly groceries

• £63 on weekly meals out and takeaways

• Running a 3 year old small car

• Getting occasional taxis and trains

• A two week 3* holiday abroad along with a long weekend UK break

  
  

Alternatively, for a minimum standard of living you’d be looking at £14,400 for a single person or £22,400 for a two-person household.

For a comfortable standard of living this increases to £43,100 for a single person or £59,000 for a couple.

Some pensioners continue to work in full or part time employment delaying access to their private pensions and in some cases the state pension.

Options to help you supplement your income could involve downsizing to a smaller or cheaper property.  This could in turn help with saving costs associated with running a larger home, such as home maintenance and utility costs.

Another option could be to rent out a room in your home to a lodger. The government has a rent-a-room scheme available to help you get started, and it could be tax-exempt if you earn less than £7,500.

Register to get work as an "Extra" in TV or film productions. The average rate for a full days is around £200 with extra allowances and you are nicely fed.

If you are fit and healthy dog walking is a good way to stay fit and earn money. Rates for dog walking are around £15 an hour and £30-£45 for an overnight stay at your or the dog owners home.