State Pension currently provides essential financial support for nearly 12.5 million older people across the country, including some 981,399 retirees living in Scotland. This regular payment is available for those who have reached the UK Government’s eligible retirement age, which is now 66 for both men and women, and have paid at least 10 years of National Insurance contributions.
However, many people approaching the official retirement age this year to start claiming State Pension from the Department for Work and Pensions (DWP), or those approaching 55 and keen to start withdrawing from a personal or workplace pension, may not be aware of a handy checklist produced by the Citizens Advice network to help navigate the unchartered territory of the road to retirement.
The nine-point checklist is a good place to start if you’re nearing the end of your working life and not sure what financial support is available in later life to help you enjoy retirement to its fullest.
Things to do so that you will be ready for retirement
Citizens Advice Scotland has a full guide to retirement planning which you can read here, below is a quick overview of what you should check as you approach retirement.
1. Work out what money you’ll have coming in and think about how your spending might change once you’re retired - the Citizens Advice Budgeting Tool can help with drawing up a budget.
2. If you get benefits, let the benefit provider know when you will be retiring - you may have to claim a different benefit or the amount you get might change.
3. Check whether you're entitled to any new benefits - you might be able to get benefits like Carer's Allowance, Housing Benefit or a Council Tax Reduction.
4. Work out how much is left to pay on your mortgage (if you have one) - you might want to pay off what's left with a lump sum, but you should get financial advice first
5. Get an estimate of your State Pension - the GOV.UK State Pension calculator can help you with this.
6. Track down any pension providers that you’ve lost contact with - the Pension Tracing Service can help with this. Call them on 0800 731 0193 or use their online form to find a lost pension.
7. Get in touch with all your pension providers and let them know you’re planning for retirement - they'll usually send you important information about your pension.
8. Get financial advice or help from MoneyHelper (formerly Pension Wise) - if you have a personal pension so that you know all the options available to you. You may have to pay for independent financial advice, but it could be worth it in the long run.
9. Consider leaving your pension pot to someone when you die - there will be tax implications for doing this, so you should talk to your pension provider or an independent financial adviser.
Find out more about preparing your finances for retirement on the Citizens Advice Website here.
To keep up to date with the latest State Pension news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out four times each week - sign up here.
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