Who works legally and is insured must pay contributions and only those people will get pension.
Early retirement in the UK– how to get it? There is not simple and straightforward answer on this question. For example, what should elderly person who risks dismissing from work do? Or if you do not want to work up to age of 70? There are a lot of issues, because in the UK there are several different sources of pension payments.
Here are some examples that you need to understand and analyze:
Is there an early retirement?
Pension is calculated and paid in accordance with the contributions NIC and can be available only after reaching the appropriate age – after the age of 68 (according to the latest reform). Unfortunately, you cannot apply for it earlier
Private retirement can be paid at the age of 55 – the so-called personal pension – how to do it?
We establish a fund at the pension provider, which can be a bank or other institution. You can put aside money on this account and you have several options for payments. From your fund you can legally take some of the money contained in the account. You can withdraw more or less, depending on your needs, the remainder of the fund is still invested. Unfortunately it is not possible to pay all the savings at a time.
Do you want to have access to two sources of savings? Check that you have a contract within the work pension and whether within the framework of the Fund you can make a withdrawal at the age of 55.
Consider whether it makes sense to stop working in your fifties?
It all depends on how much you have in your savings account and how big they are or what expenses you will have for early retirement. Often we meet with words that we do not want to work until late in our lives (until our death), so we decide on such a solution.
If you are sure that you have a lot of funds in your account, you can take early retirement at the age of 55 and not worry that you might miss money However, if you do not have that certainty, it is better to think about other sources of income and reduce the cost of living. Everything has its pros and cons so remember to always consider the consequences several times.
- Unemployed, who may pay contributions on their own
- Employees that the boss does not offer a company pension scheme
- Employees who want to enlarge retire obtained from the company’s pension fund.
- Employees who do not meet the conditions of the company’s fund
Personal Pension as a tax free lump sum – a serious illness after which you know that you have been less than one year of life
Situation is very unpleasant, but you have to remember that this option is there. You can pay the pension fund without the need for removal of tax on it. You are less than 75 years old and less than £ 1.25 million retirement savings (including all pension funds).
Company Pension – conditions for obtaining capital from pension fund depend on the contract with the employer and its existence in the workplace. Thanks to it, your pension grows twice as fast.
Everything depends on us!
You dream about early retirement, all is for you. There were some changes Few changes since the creation of pension systems. This state was to ensure peaceful old financia agel, unfortunately, in these times it is unrealistic. Therefore, you should accumulate adequate retirement funds on your own. How to do it?
Pay attention to how mych money you spend. You can always get some knowledge from different sources. Take some information from friends who have already managed to achieve financial stability. Small steps to the goal. The small income is too successful, because the financial wisdom lies not in possession of large amounts of money, but how to have them
Personal Finance is to know a few rules and a desire to change personal habits. When you deploy them in life, you can retire, when you want. Even at the age 40, so very early, but you have to keep in mind that the State Pension will be too great. It all depends on the rules.
Nowadays, you very often are considering retirement in England – when, how much and for how long .. Of course, it’s only you can decide whether it’s time to take a final decision.
You need to remember that everything largely depends on you, your needs and requirements. Early retirement is to achieve for everyone
NOTE: I present private opinions and I am not responsible for the readers' decisions. I always try to present current information but may no longer be up to date. Therefore, before making a decision, please verify them and consult a licensed financial adviser.