A guide to Pensions

As you get older, you will inevitably stop working. This will vary depending on your job, age and health.
You may retire when you can, or you may work longer because you enjoy it, it’s not the same for
everyone.

Pensions are always an important factor in finances for senior citizens, so it helps to know a bit more about
them.

Employment Based Pensions

Not everyone receives this, but an employment based pension can provide extra money in your retirement.
This will most likely have required financial input from both you and your employer, but it essentially offers
a tax differed method of saving money. They are not an option for everyone, even in the same company,
and are also referred to as SSAS or Small Self Administered Scheme. It is also not always dealt with in terms
of money either, with the option of taking an SSAS in stock options or investment trusts occasionally being
an option.

State Pensions

State pensions are the most common elderly support pension available. These are given through the
government, as opposed to a company you worked for. The amount given can vary, commonly based on
the amount of years you have paid national tax insurance. In short, the more you have paid the more you
are likely to receive per week.

If you haven't paid national insurance, that usually isn't too much of a problem either. There is still a
minimum amount, providing the government has been paying tax credits on your behalf.

Early Retirement

If you decide to retire early, this will affect your pension. Since the pension pays you a certain amount, over
a long period in weekly instalments, retiring early will change these figures. Essentially, you will receive less
per week as you will be being paid more often in the long run.

For this reason, early retirement is not often recommended. Unless you have additional employment based
pensions, or a service pension from the army, to provide additional income, you will have less money per
week. Depending on your state pension, this can be severe or limit your options and lifestyle in the future.

If certain health problems related to your age are stopping you from working, you could also consider
working from home. Fortunately, today’s elders count with many products and services such as stairlift
solutions that will help to improve their living conditions.