Pension tips for a more productive pension

Pensions are probably far from the minds of most of us as we think of the here and now and the bills that are coming at the end of the month. However, none of us can stop the aging process and the fact is that we will all get old and eventually become unable to work, so a pension is pretty essential.

Make a pension part of your monthly budget

Saving for a pension is something we all should add to our monthly budget. It helps to think of the pension saving as a bit like tax: essential. It also helps to set up a direct debit so the pension saving payment goes out at the end of the month, just like any other bill. This way you will see your pension build up and accumulate and will avoid that horrible realisation that old age is fast approaching and there is no financial provision made for it. If you have no spare cash to invest in a pension, why not make an effort to cut your bills around the house.

This can range from being more sensible with wrapping up warm to using internet comparison sites to ensure you’re getting the best deals on your online grocery shopping, If you’re also one of the many broadband users who surfs exclusively on their smartphone I’d also recommend exploring the options for switching to a lower cost provider. I heartily recommend who supplies me with my mobile broadband for a fiver a month. The other aspect to note about shopping around for better deals is the life span of the contract you are signing up for, smart phone are notorious for a 2 year contract deal but mobi-data will offer you services on a one month rolling contract with no long term obligation – which is really useful as you have the flexibility to opt out of the payments whenever you need to tighten your belt. Look for this flexibility in all of your subscriptions if possible.

Ensure you take account of the fact that you will probably live longer

In our pension planning, we really should make provision for the fact that we will probably live much longer than our parents did, thanks to advances in medicine and technology. As such the pension planning process should reflect that we are all expected to live a bit longer.

Postpone your retirement is always a pension booster is possible

In light of the fact that we all live longer these days, it is a good idea to think of postponing any retirement and this is an idea that even the UK government has acted on by raising pension ages. This affords an excellent opportunity to save a bit more and put a bit more into the pension pot. Moreover, it ensures that we don’t get bored in our retirement. Looking at the plus side of continuing to work is a good idea: work keeps you occupied and entertained, particularly if you are doing something you enjoy. Moreover, there is a lot of evidence that inactivity and too much downtime for the older generation is actually a disadvantage as it advances the aging process and can often lead to boredom, frustration and even depression for the retired person.

Additionally, postponing retirement means that we can afford to do more than just make provision for necessities; it means we can improve the quality of the retirement experience and ensure that retirement is something we enjoy to the full as we are supposed to! Postponing retirement also ensures we have that little bit of extra cash to give to loved ones of they are in need of a little financial support. Most retirees don’t just have themselves to think of, but they may find that the average pension plan, planned several years ago does not take account of a family that has expanded and now includes a network of kids, grandkids and great grandkids!

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