Pensioner surprised to find she'd lost a pension
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The cost of living crisis may curb some individuals’ plans to leave the workforce, but others will be undeterred. Regardless of whether someone is planning their retirement imminently, or putting it off a while longer, they will need to put an action plan into place.
Express.co.uk spoke exclusively to Karen Barrett, CEO and founder of Unbiased, about the matter.
She explained what Britons should be thinking about when it comes to planning retirement.
Ms Barrett said: “There is no longer any fixed ‘retirement age’ in the UK – you can retire whenever you want.
“However, there are key ages to bear in mind.
“The age at which you can draw your state pension is 66 and soon to be rising, and the age you can access your pension pots is 55 or over.
“If applicable, bear in mind what age you can access your final salary workplace pension. This depends on the scheme, but it is usually 60 or 65.”
Ms Barrett suggests having these ages in mind helps Britons to determine when they can access cash, and how they might want to exit the workforce.
She continued: “Assuming you want to retire as soon as it is practical to do so, there are key factors to consider.
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“These are your current age, how much you’re contributing to your pension pot each month, and how much state pension you’re eligible for.
“Consider how long your retirement is likely to be, and whether you have any additional reliable sources or income or other investments.
“Also consider how you choose to take your pension.”
When it comes to retirement, looking for simple ways to save money can help Britons to budget for their future after departing the workforce.
With retired individuals or those on the cusp of retirement looking for ways to cut costs, Express.co.uk also gained insight from the Royal College of Occupational Therapists, who shared several tips to help.
One occupational therapist said: “An insulated mug can help to keep our drinks warm and help to warm us up when commuting in the car, or at home to save those energy bills!
“Keeping the drink warmer for longer cuts out the task of having to warm our drinks up again in the microwave when time has run away with us.”
Another suggested: “Get using your slow cooker! Not only does it save your own energy with reduced prep time, but it also uses less electricity than other cooking methods!”
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While a third suggested: “My hack is to use a travel kettle! Using a small amount of water could save money on bills.”
For people planning for retirement, it is important to have an understanding of finances, and when one can afford to leave work.
Ms Barrett from unbiased pointed Britons towards a pension calculator, which is likely to break down the key details a person needs.
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