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| Things to Think About at Retirement |
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| Written by Elizabeth H Warrington |
| Thursday, 24 February 2011 10:55 |
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It can be a challenging transition when facing retirement. Your lifestyle will be transformed as your day to day routine and financial situation changes. Whilst adapting to your new found freedom may come naturally to you, planning in advance for changes to your financial circumstances is highly advisable so as to avoid unnecessary pressures and stresses. Here are a few things to consider when thinking ahead. Well, the first thing you should consider is the type of income you will have. For many people this means deciding how to turn their own pension fund into an income. The two most common means of doing this are an annuity or income drawdown. Each, of course, has its own benefits and downsides. Two of the key factors in deciding which income type will be most effective is to look at the longevity and sustainability of the chosen type. Money decreases in value over time due to inflation and interest. For those who chose a fixed lifetime annuity, you retirement income will stay the same even though the value of your money will decrease. Ensure you have a "future proof" pension income that makes the most of the funds that you have worked so hard to put by. How flexible will your pension income be? How often will you be able to receive the income that you need? Whether it is weekly, monthly, quarterly or even in one big amount each year, timing is essential and could influence how best to transform your pension into an income. Aside from deciding how you will convert your pension into an income, you will have to consider how your income level will affect your lifestyle. Will your income be significantly lower than when you were working? And if so will you be able to supplement it in some way or will you have to adjust your lifestyle accordingly. It's not uncommon for retirees to downsize their home in order to cut back on expenses during retirement. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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