When people think about retirement?

When people think about retirement they usually think about all the activities that they love to do or all the time they will have to go on trips and holidays. But with retirement comes a more important issue – how will you pay for all these activities and holidays?


For most of us, by the time we retire we will have built up a pension fund, but then what? 
Annuity Options:

Two main factors:
Which affect the quote of a lifetime annuity are: 
The normal life expectancy of a person of your age who is in good health.
The interest at the time of the annuity quote.The downside to this type of annuity is that once the plan is taken out, nothing in the plan can be changed at a later date. Should the state of your health change or if the interest rate increases this will have no negative nor positive impact on your annuity rate.
An enhanced annuity on the other hand can take into account your health with a simple medical questionnaire and therefore if you suffer from poor health a plan that is more suited to your health would benefit you more in the long run.
There are also options to take out a temporary annuity plan where the guarantee income last for 5 years and at the end of the 5 years that guarantee expires, however the you will have a guaranteed fund which can be used to buy another annuity and if the interest rates have risen then you should benefit more with the higher interest rate. 
Wondering how to plan for your retirement? Here are crucial things you should do.
According to the Centre for Disease Control, you have roughly 20 or more years to live after retirement.  This is enough time for inflation to catch up with you and deplete your savings. To counter this, you are advised to keep your money invested in money generating areas such as stocks and bonds. The returns from these ventures are normally commensurate with current economic times.

• Have A Goal
• Do Not Procrastinate
• Avoid Outsized Home Costs
• Involve A Financial Planner
• Final Thoughts

Surely we can’t live the rest our lives just on this port of money? An annuity is a way to take that pension fund and create an ongoing income out of it and essentially make the most out of that pot of money. Depending on your individual circumstances you could boost your pension income quite significantly. 


There of course many annuity options which will apply to you and it is important to understand which ones are suitable for you; after all this is a decision that will affect the rest of your life. Most people who take out a pension annuity would go for a simple lifetime annuity. This is normally a sensible option because a lifetime annuity guarantees you a fixed ongoing income so you know what you will be getting in advance. 




(That is the income you receive from the annuity) If the interest rate was to go up you would not benefit from it. 

Critical Financial Advice You Should Follow As You Plan For Retirement

Additionally, many people in their mid-sixties cannot think of quitting their jobs. This is mainly because of the current harsh economic times where no one can afford to simply relax at home and enjoy their sunset years. Therefore, the need to plan for retirement is ever so imperative given the fact that as you age, your earning power reduces.
Stay Invested

Many people save for retirement without a particular goal, consequently shortchanging themselves when they have to quit their jobs. Brewer advises people to use the replacement ratio, which will help you calculate how much of your income you need to replace each year after retirement. She recommends planning to reinstate 70% of former income in order to live a comfortable life in future.

Did you know that the magnitude of your retirement returns depends on how much you saved? This means that procrastinating to save, consoled by the fact that you have many working years left will deny you the retirement funds you deserve.
There is no bigger advantage than starting early to save for retirement. Wise people to open accounts as soon as possible and set up automatic contributions from their money. To increase your monthly contributions, Brewer recommends setting up a biannual or annual calendar which will remind you to review your monthly contributions based on current income.

As Financial Planning, says that approaching retirement with too much debt is a potential disaster.  While certain debts are good, Present cautions that massive real estate debt. In the event that you have such debt, get advises that you consider making pre-retirement loan repayments, to avoid eating into your savings.

While this is not mandatory, engaging a financial planner will help you seal the unseen loopholes you would otherwise not see. While they are great at developing financial goals and strategies, you should  ensure that you find a financial planner you can trust.


Basically, your sunset years should be spent enjoying the fruits of your labor and not paying back debts. Make sure that your life is planned out well and always remember to factor in inflation to cushion yourself against future economic uncertainties.