There will be some big changes you have to adjust to when it’s time for retirement. Thankfully, you can prepare ahead of time. You can work out when you can start receiving your pension, look at the options for a funeral plan provider, and much more.

Here are some ideas for what you can do to prepare your finances for retirement.

When Can You Start Receiving Your Pension?

You can claim your state pension as soon as you reach pension age. The state pension age is constantly under review and has already changed several times since it was first introduced in 1948. When you can claim your pension depends on your date of birth.

Currently, the state pension age for most people is 67. Under the current law, the state pension age is due to increase to 68 between 2044 and 2046. Although the government recently announced it would like to bring this date forward. Once the proposed changes have been approved by Parliament, the state pension age will increase to 68 between 2037 and 2039.

When you reach state pension age, you can defer claiming your pension if you prefer to keep working. If you defer your pension you can still retire, or carry on working and claim your pension too.

If you also have a workplace or personal pension, the earliest you can start receiving it is when you’re 55. However, it’s best to clarify the situation with your pension provider. Also, if you retire because of ill health, you may be able to receive your pension earlier.

Checklist of Things to Do When Retirement is Around the Corner

When you’re getting close to retirement age, it’s a good idea to start planning. Follow this checklist and you should be ready when the time comes.

• Draw up a budget: Work out what income you’ll have and think about how your spending habits might change once you’re retired.
• Contact your benefits provider: If you receive any benefits you must let the provider know when you’ll retire. The amount you receive may change or you might have to claim a different benefit.
• Check if you’re eligible for any new benefits: You might be able to get Carer’s Allowance, Council Tax Reduction, or Housing Benefit.
• How much have to got left to pay on your mortgage? If possible, consider paying off what’s left with a lump sum.
• Use the government’s online state pension calculator: You can use this online tool to get an estimate of your state pension.
• Are there any other pension providers? You can get in touch with the Pension Tracing Service and they will help you track down any pension providers you’ve lost contact with.
• Contact your current pension providers: You must let them know you’re planning to retire and they will provide all the necessary information.
• Get some financial advice: You can approach an independent financial advisor or get help from Pension Wise. This is a service provided by MoneyHelper that’s backed by the government. Advice is free and impartial for anyone over 50.
• Consider leaving your pension pot to a loved one: There are tax implications with this option, but it’s worth considering if you have loved ones you want to take care of when you die.

Pension Scams to Steer Clear Of

In April 2015, new rules allowed people to take some or all of the pension pot as a lump sum. From this date, pension scams became more common.

These scams take the form of fake investments designed to con you out of your money. They can be very convincing and can catch anyone out.

Making Sure Those You Love Are Taken Care Of

With a little bit of planning, you can put your mind at ease and save loved ones a lot of trouble later.

End-of-life planning entails writing a last will and so much more. Consider the following:

• Gather important documents and contact information: Things you can gather and keep in one place include your property deeds, vehicle registration documents, official certificates such as birth and marriage, and contact information for your lawyer, insurance company, and doctor.
• Execute a last will and testament: This is one of the most important documents you have to organise because it gives details about where you want your property to go after you die.
• Complete a living will or advance directive: This is a legal document in which you list your preferences should you become incapacitated or unable to express your preferences.
• Put in place a power of attorney: In this document, you name someone to be in charge of making financial decisions on your behalf should you become incapacitated.
• Consider a living trust: With a living trust, you retain control over any property placed within the trust but upon your death, your trustee gains control and distributes assets according to your instructions.
• Secure your digital assets: As well as investment, shopping, and online bank accounts, you may also have social media accounts that will need handling after your death.
• Plan your final arrangements: Your final arrangements might include organ donation, funeral plans, and how these might be paid for. One option is to put money into a bank account to cover the cost of your funeral. Alternatively, you can take out a funeral plan.
• Make copies and store your documents: Once you’ve gathered all your important documents, make copies and store the originals and copies in a safe place. Make sure that at least one person will be able to access your documents after you die.
• Talk with your loved ones: The above points are all positive steps to make moving forward, but talking with your loved ones about your wishes tops them all. The clearer you can make it on what you want, the more likely your wishes will be followed when the time comes. It also means there will be fewer problems for your loved ones because they won’t be left guessing your intentions. It’s not an easy conversation to have with those you love. But think of it as an opportunity to talk to them about your memories and life and pass on cherished stories and photographs.