6 considerations for those striving towards financial independence

Learn about some options and what to consider when planning early for retirement.

10:00 18 April 2013

Margaret Thatcher may be remembered for her ideas regarding personal finances among other things, and of course government finance as well.

 

Currently there are a variety of ways to work towards accomplishing a particular vision (one which may be seen to touch on some of the things Thatcher laid out so many years ago).

 

This involves Individual Savings Accounts as well as personal pension plans. There may be people who are uneasy at the prospect of having to learn about and manage related financial aspects of their lives, and there may be those who are relieved that they have control over their future level of comfort while they are still of working age.

 

To combat the different surprises that life can create people have much to consider. Here are a just a few of the items which people need to consider while they are working as part of their retirement planning.

 

• Decide if they want to opt out of the new personal pensions

 

• Find out if they qualify for employer contributions (this is like free money)

 

• Become familiar with a variety of Individual Savings Accounts

 

• Decide whether or not they want to speak with an Independent Financial Advisor for help with planning some difficult financial decisions

 

• Familiarity with retirement options such as annuities and drawdowns

 

Here are the different Individual Savings Account Benefits for consumers:

 

• Ability to set aside more money than is allowed for pension plans

 

• Able to have both a pension plan, and multiple Individual Savings Accounts

 

• The annual cap on deposits is separate from the ISAs

 

• Control how to invest money with a Stock and Shares ISA