How to start your retirement planning

[Learners Quest]

There are many different steps one can take in order to create a plan for their retirement. The first step is to estimate how much money they will get monthly or annually from their pension or retirement fund. This can be done by contacting the company that holds your pension and asking what they expect at retirement age. Another way would be to contact an accountant and ask them how much of your earnings will be taken out at retirement, then run through with them the numbers necessary for a realistic plan. The next step is to plan out how long one will wait until they reach their retirement age, which allows one to calculate how much money they have to live comfortably in retirement. This can be done by reading some articles about the subject and looking at statistics about life expectancy rates. The last step would be to create a financial plan that will include all of the actions and decisions that need to be made by someone at this critical time in their lives, such as the amount of money they will want to spend while they are still working and then after they retire.
A pay-as-you-go pension is when an individual purchases an annuity in order for them to receive a regular income from their pension funds. This annuity can be purchased either before or after one's retirement age, as long as it is not used for any other purpose other than providing income.