Money Matey

People often say that retirement and pension go hand in hand. Well, it’s one of biggest truths in the life of all working individuals. However, there are many who start planning long before they retire, and most retirees have a propensity to kick start their retired life with pensions. Well, it has been a blunder for many and some are struggling with an expectation of leading a better lifestyle. Therefore, retirees today prefer to go for annuities in order to ensure a secured future. So, if you are one of them willing to go for an annuity, the first and foremost thing is to look for best annuities rates.

Right after one gets into a professional career, financial security pops up as the next big concern. Well, the concern doubles after retirement since it’s a period of no pay. Therefore, the only option that can wipe off all the troubles from the life of retired personals is annuity. The more you gather savings, the more funds will be added on to your pension pot. There are plenty of annuity products with varied prices. Just the time when you are about to retire, you can start exploring the sites and shop for the best annuities rates.

The first thing to be done all annuity applicants is to chalk out all his needs and wants. Once done, he can get in touch with annuity providers and ask for annuity rates that can help him accomplish all his future goals. In the course of hunting for the best annuities rates, it’s better if you can look for the option of an enhanced annuity. With this option, you can enjoy up to 40% higher income in comparison to an ordinary annuity plan. In fact, if you are suffering from any health complication, you can benefit the most.

Pensioners who do not wish to claim means-tested benefits, stay at home mothers and savers will be the best off if a new universal state pension comes in, which it has been vastly rumoured to do so.

Secretary of State for Work and Pension, Iain Duncan Smith, will be announcing plans for reform and a scrapping of the means tested pension to be replaced by a universal pension. However it will be the details that will be interesting to see including things like how high the pension will be and if entitlement is based on residency in Britain or National Insurance Contributions.

Around a third of pensioners do not currently claim the means-tested benefits they are entitled to and a universal state pension of around £140 a week would simplify the system and make it a lot easier for everyone including the Department for Work and Pensions who struggle to administer current pensions.

Stay-at-home mothers will benefit from a reduced number of years NICs needed to earn a full pension and they would gain further if it was based on residency instead of NICs, however this would mean the general tax payer would lose out as this would be expensive.

Those who have their own savings account at the moment as a pension can opt out of the State Second Pension and a universal state pension would replace this second pension thus allowing the government to save billions a year in NICs rebates for people who leave the State Second Pension.