21st August 2015

Saving for your future

Thinking ahead to your future time of life when you will be pension age may be something that never crosses your mind. You may think it is a long way off (which it probably is) however it is something that you should start thinking about ASAP. I am now 28 and when I am pension age there will be no state pension as there will most likely be no money left. From 2020 the pension age is changing so men and woman will not be able to claim state pension until they are 66. Starting a pension is something that does worry me, however it is something I am currently doing nothing about and I should be.

Nutmeg is a company that you can start a new pension with or transfer another pension to or bring all of your pensions too so they are all under one roof. Nutmeg will provide you with an intelligent portfolio that is quick and easy to set up.

How it works…

Nutmeg personal pension is a pension plan that you can pay into as and when you wish. The government will add 25%  of what ever you put in up to £40,000 a year OR the value of your annual salary, which ever amount is the lowest, if you are a basic tax payer. Those of you who pay higher tax are not left out, you may be able to claim even more through a tax return form.

So to start a Nutmeg pension all you need is a minimum of £5,000 you can then pay regular amounts in or you can pay in ad hoc lump sums. You will not be able to withdraw any money until you are 55 years old.

Nutmeg have a simple to use form that asks you a few questions to start to build your portfolio. Nutmeg then  invest your money and you are able to tell them if you don’t want to take any risks, go Slow and steady, win some lose some etc. Once you have entered all of your details they will give you an estimated amount of lump sum you can take at the end of the years you selected, the also give you an estimate of what your pension could be worth in the year you selected to start taking it. You are able to play around with this to suit your needs and wants.

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Nutmeg also have a Pension calculator that you can use. I have had a play around with this myself and it is fantastic. You fill in the below questions and then it gives you a graph based on the information you provided.

If you are retired and own your own home, you can use the home to your advantage when you have financial difficulties. The value of the home, also called equity, can be borrowed against the reverse mortgageUnlike a traditional loan, a loan provided by a reverse mortgage lender is specially designed for retirees. You can qualify for it as long as you are at least 62 years of age and financially able to continue paying the taxes and other obligations of home ownership. After receiving the loan, you will get money from your home equity until the equity you can borrow runs out. You may choose when to repay the money until you leave the home. If that happens, the loan is called in by the lender immediately.

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So have you thought about your future finances? Are you thinking about what you will do when you are 55+ for money? No one wants to be working until they are 66 to get a state pension. Myself included… Start thinking about this now. As an adult you are never to young to start planning for retirement.

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