Whether you are prepared or not there will come a time when you need to retire from the workforce. While you should contact DWP to find out what benefits you qualify for it would be unwise to rely solely on the government to provide you with everything you need for a comfortable life. The government will provide barely enough to exist so it would be in your best interest to start planning for your retirement as soon as possible.
How Much Do I Need to Retire?
The answer to this question depends on the individual being asked. In order to project how much money you need to retire you first have to think about how long you will live post retirement? No one knows with certainty how long we will live but if several members of your family have lived well into their 70’s, 80’s or beyond then you should expect the same for yourself.
Now that you have a general idea of how long you will live the next question is what do you project your annual expenses to be? There are many variables in this equation but if you had no debts right now aside from utilities, food, gas, insurance and entertainment what would you need to live. You would take that amount then multiply it by the total number of years you plan on being retired. This number may seem like a daunting one at first but you can work towards it over time.
Saving Money at Regular Intervals
You will need to start saving money on a regular basis so if you are employed full-time try this approach. Speak with your financial institution and ask them to set aside a certain amount of money every pay period in a separate account. The premise behind this approach is if you do not have easy access to the cash you are less likely to spend it on impulse purchases. Aside with saving money on your own there are schemes available by the government that will let you invest your money for retirement in a tax deferred account. Since this account is only taxed in the future when you withdraw it you have the benefit of compounding your returns over many years. This is a very attractive option to individuals who are trying to maximize their return on retirement investing.
Lead a Healthier Life
One of the biggest drawbacks to having a great retirement is poor health. While you are relatively young and healthy it would be wise to take good care of yourself. By leading a healthy life you can stay in the workforce longer which reduces the total amount of time you will be retired and what you need to save for that retirement. The quality of your life will also be superior so that is something to keep in mind when you contact DWP to find out what the current benefit rates.