Cashing in
If you qualify, you might be tempted to cash in your pension. Thatâs understandable, particularly if debts are a concern â recent estimates show that nearly a third of homeowners after the age of 61 will still be paying their mortgage off. But if youâre really keen to get your hands on the cash, even if itâs just because it feels good to have the cash now â you need to think carefully about the risks and your longer term needs. After all, since weâre living longer, it might need to last for at least a couple of decades.
Preserving your savings
Cash is not always king if youâre keeping it for the long term. Certainly in an era of low interest rates and returns on cash savings, inflation can wipe off value. Without any improvement in interest rates, ÂŁ30,000 could be devalued to just over ÂŁ24,512 after 10 years, assuming you spend the small amount of interest you gain and the inflation rate is 2%. Thatâs why many people opt for investing in the stock market, when it comes to longer term savings. It gives you access to better potential growth. Worth taking the risk?
No wonder the recently opened and extended offer of âOlder Person Bondsâ by the Treasury has attracted so much interest.
If you are looking to take more control and responsibility for your retirement savings planning in April, it is definitely recommended that you speak to an expert to get guidance on your own personal situation and a good idea on what will deliver the best solution for you.
Sources: www.standardlife.co.uk (Article: 2015/02/10)
