Tuesday, 14 July 2015

Thinking Of My Future Finances

Earlier this year my dad who is in his mid 50's took early retirement from his job, as he was sick of working long hours and wanted to enjoy life more. He was lucky that he was financial secure enough to do this as his mortgage is paid off, and he had built up a good pension during his thirty years service with his old employer. He is loving being retired and is able to spend time doing whatever he likes and is much more relaxed and happier in himself. 

My dad's retirement got me thinking that at the moment their is noway that I would be able to take early retirement myself in my 50's. I am 31 now and I am a stay at home mum with no regular wage coming in any more. Also being at home with my children means I do not currently pay national insurance contributions, so I am unsure if I will even be able to claim a state pension when the time comes to retire.You need at least 30 years worth of national insurance contributions to claim a state pension, I only have about five years worth so far. 

My partner has a workplace pension which he pays into straight from his wages each week and his employer also pays into meaning he will hopefully be financial stable in retirement. But what about me what are my choices ? I could either go back to work and hope I earn enough national insurance contributions to claim a small state pension. Or I could go back to work and get a work place pension, but I am not planning either of these things until my son starts school in four years time when I shall return to work full time. 

So where does this leave me ? Well I have been doing some research and I have found that their is three types of pension's available, as well as a work place pension and a state pension their is also the option of a private pension. A private pension is where I could save a small amount of money each month, which I could build up over the years for my retirement. I think this would be the perfect solution for someone like myself who does not have a regular wage yet still wants to be financially stable in later life. 

I have recently came across Nutmeg who are a investment management company who offer pensions that are tailored to suit you. The Nutmeg pension is easy to set up and even allows you to transfer any other pensions that you may already have from previous employers or savings. Your account is online and you can access it whenever you like 24/7 which is handy in today's digital world, as it also means no scary meetings with bank managers or trying to get through to call centres whenever you want to check your plan. 

You can start a Nutmeg pension from £5,000 and pay into it whenever you like. If you are a basic rate UK taxpayer then the government will add 25 % of whatever you pay into your pension yourself, up to £40,000 or the value of your annual salary whichever is lowest. Nutmeg also have low annual management fee's with no extra hidden costs making sorting out a pension straight forward for people like me who don't know a great deal about pensions. But remember if like me you are not clued up on pensions then you can get advice from a independent financial adverser who can help explain everything to you. 

Have you thought about your retirement plans and have a pension in place ? Or are you like me and now you are getting older starting to worry you have no pension plans in place ? 

 * This is a collaborative post.


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