Budget to Retire

By Basdeo Paul

Have you ever sat down and figured out how much you need for retirement. You might have a 401 K and feel like that is enough. Do you know how much is in your retirement plan? Do you know how much you really need to retire? If you don't want to work into your eighties than it is time to think about retirement now.

When do you plan on retiring? Most people want to retire by 65. That means that your retirement fund will need to last you 20 to 25 years. That is a long period of time to save for so it takes real work to calculate how much you will need and how to get that much money.

In order to save money efficiently for retirement you need to have a goal amount that you want to see in the bank. You can calculate how much it will cost you to live each year of your retirement. Figure up you mortgage or rent, monthly bills, food costs, car insurance, clothing budget, travel budget, ect. Once you have a figure for a year's worth of living expenses multiply that by 20 or 25 to come up with a savings goal.

After creating a savings goal you might feel it is hopeless. You can never save that much money. Well, with a good budget now you will be surprised how much money you really have. You can do simple things like cutting out coffee shop visits and trips to the drive thru. The average person can save several thousand a year by eliminating those two things alone. You can also become a bargain shopper and clip coupons to save extra money. By creating a strict budget for yourself now you will be able to enjoy life after work.

Once you know how much you need and how much you can afford to save you can try to make the two numbers add up by finding some safe investments for your money. A mutual fund or a high interest savings account will help your money multiply on its own. All of this budgeting and calculating can get pretty confusing. If you need help with this or other financial issues you can use an online financial calculator. There are many to choose from that are easy to use at www.personalfinanceissues.com .

With a bit of thought anyone can save for retirement. You just have to prioritize your life and your spending and you will find plenty of room in your budget to stash some money away for your future. Budget now and enjoy the future.

About the Author:

Basdeo Paul is an internet marketer who owns the website http://personalfinanceissues.com, and wants to help people who struggle with financial problems. He introduced more than 35 financial calculators to estimate your budgets.

Is a Pensions Release the right option for you ?

By Roger Gordon

It may come as a surprise to you that in the present UK financial climate that a great number of people in the 50+ bracket who find themselves in financial difficulties may be able to use their pension funds now to ease the strain, rather than waiting till later life to utilise their pension benefits.

It is possible to withdraw a portion of your pension fund early in the form of Tax Free Cash. This process is known as pension release which means that a percentage of the fund (often 25% ) is taken now with the remainder withdrawn at a later date. The later date is when you retire or choose to draw an income from your pension. The rules will change in 2010 when 55 becomes the minimum age to take Pension Release.

It is possible that you may be unaware of the flexibility of pensions these days. If you withdraw your pension benefits at the age of 50 you are still permitted to work and carry on paying into a pension arrangement. This can be started at a later date when you feel more financially able to do so.

This new fund can be funded by lump sums or regular contributions, both of which qualify for tax relief. You will need to take qualified Independent Advice before making any firm commitment.

Pension Release may seem like the ideal solution to your financial problems. You need to be fully aware that this will reduce a portion of your personal income in later life. Consequently you need to be consider any hidden costs and the potential loses and gains involved before you take such an important financial decision.

There are a number of Independent Pension Advisers who are willing to provide free Specialist Pensions Advice. They will be able to evaluate your current pensions position and give you advice as to your potential options.

In many cases your existing pension provider will have the facility for a Pension Release. If this is not possible it will be necessary to transfer your benefits to another arrangement. This is likely to involve some costs and you need to be fully aware of these before confirming. You should push to get the Tax Free cash element deducted before any costs and charges are applied.

About the Author:

Hope you found my article informative for a full range of pension advice, go to website http://www.pensionlite.co.uk