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Retiring from work is a decision which most people will have considered very carefully. Many people are now retiring at a younger age and living longer. Retirement can be an exciting new phase in your life, especially if you are in good health and financially secure.
Planning for your retirement is important, and, before you retire, it's worth planning your finances to make sure that you get the most out of this time in your life. Your retirement from work will also mean changes in your lifestyle, and it's important to consider the emotional and practical implications of these changes. This section gives information and ideas about planning your finances and leisure time, and the other changes that retirement may bring.
Age discrimination
On 1 October 2006 The Employment Equality (Age) Regulations 2006 took effect across England, Wales and Scotland. The law has been introduced to protect employees from being discriminated against at work because of their age, and includes regulations covering recruitment, retirement and redundancy. This law means that employers can't force people to retire if they are under the age of 65 years old. If they are aged over 65 years old, they must be given six months notice of retirement. This new law means that you have more flexibility about when you might choose to retire. For further information, see our section on Age discrimination.
Planning your finances
If you are considering retirement, it is important to plan ahead and ensure that you will be financially secure. Pensions, savings, welfare benefits and other sources of income will ensure that you are able to enjoy this new phase of your life as much as possible. It may be useful to speak to an independent financial adviser if you need advice and guidance about your retirement finances. See our section on Financial advice for further details.
- State Pension - The age at which you can draw your state pension is currently 65 years old for men and 60 years old for women. It will be gradually raised to 65 years old for women born on or after 6 April 1950. About four months before you reach state retirement age you should receive a retirement pack from the Pension Service. This will include a pension forecast and an ‘invitation to claim’. For further information about the State Pension and how to obtain a pension forecast, see our section on State Pension.
- Private and occupational pensions - If you have a private pension or a pension from your work (occupational pension), the first step is to check your entitlement. Ask the scheme manager for an up-to-date forecast if you have not already got one. Add this to your expected state pension to see whether you will have enough income. Most people need less income in retirement – around two-thirds of your pre-retirement income is a good rule of thumb. If your pension is lower than you need, you have three options: pay in more, settle for a lower pension, or delay drawing your pension. Ask your pension manager what options you have for paying in more or putting off drawing your pension. For further information, see our section on Pensions.
- Benefits - When you retire, your income will probably reduce and you may become entitled to benefits that can improve your standard of living. It is currently estimated that approximately £4.6 billion in benefits goes unclaimed every year by older people. Even if you don’t think that you will qualify for any benefits, it is always advisable to have this checked by an independent Welfare Rights Adviser. If you have applied in the past and have been turned down, it is worth checking at least once a year to see whether any rule changes have been introduced, as pension and benefit rates and criteria change regularly. Some benefits are not means-tested and are awarded to people with a long-term health condition or disability. Disability Living Allowance and Attendance Allowance are benefits that are paid to help you with the extra costs of illness and disability and, if you qualify, you will receive them regardless of how much income or savings you have.
For further information on all of the types of benefits that are available, see our Benefits section.
Pre-retirement courses
Many employers offer pre-retirement courses to employees who are approaching retirement age. The courses will usually cover topics such as finances, leisure, volunteering, and how to make the most of your retirement. If your employer doesn't offer a pre-retirement course, visit the laterlife.com website for details of courses that may be held in your area.
North East Pre Retirement Association (NEPRA) arranges and presents pre-retirement workshops on behalf of companies or organisations for their staff who are approaching retirement. These can be arranged exclusively for an employer or within a number of 'open' workshops that are run throughout the year. They will target the particular concerns of employees at this critical time in their lives and they provide the expert advice and reassurance that they need.
The courses are two-day non-residential ‘Preparing for Retirement’ workshops, using invited specialist speakers to provide information and advice on those factors which are known to have an important bearing on the quality of life in retirement. The subjects covered include health, income tax, investment, legal matters, state benefits and use of time. Every effort is made in the workshops to allow time for members to interact with each other, to express their feelings about retirement, and to discuss specific personal issues with the specialist speakers. Members are encouraged to attend with their partner, as the retirement of one tends to affect both parties. For further information, contact Bill Ions at NEPRA using the details given below.
When you retire
Retirement is a challenging new phase in life. While it ranks high on the scale of stressful life events, it also provides the opportunity to enjoy a new lease of life. You are likely to enjoy the freedom to develop new interests, but on the other hand may feel lonely, isolated and bored at times. An important step is to plan your goals and to work towards them.
Leisure – You'll need time to adjust to your retirement. Whatever you decide to do, you may find that you'll want to keep or develop interests, stay active, and maintain a regular structure to your day. With more leisure time, it’s the ideal opportunity to try new activities, get involved in your community or learn a new skill. Our Leisure section provides a huge range of information including ideas for lifelong learning, fitness and hobbies, and details of local places of interest to visit such as museums, galleries, parks and gardens. Remember that you may not find an activity or hobby that you enjoy straightaway, but half the fun is trying new things until you find what’s right for you!
Relationships – The way you feel or are viewed by others can change with retirement. Paid employment is considered to give you status, a role, income and purpose as well as having a group of people with whom to share it. The changes involved in retiring can be rewarding and positive or stressful, confusing and frustrating. It's up to you how you adapt. You may wish to seek the support of those around you to enjoy a fulfilling and rewarding retirement. Retirement may also bring you together with your partner 24 hours a day. That's a challenge for any relationship, but one that can bring you closer together. You might like to plan for your retirement together and find a way to enjoy the extra time. If you do find that retirement starts to cause problems in your relationship, it might be worth considering counselling. See our section on Family and relationships for further information.
Part-time work and volunteering - Reaching State Pension age doesn't mean that you have to give up work altogether. You can choose to keep on working while taking your State Pension entitlement, or you can delay your claim and get paid more later on. For further information about State Pension deferral, see our section on State Pension. Bear in mind that any money you earn after State Pension age may affect income-related benefits such as Pension Credit, Housing Benefit and Council Tax Benefit. For advice and information about how to find part-time work, see our section on Looking for work.
Volunteering is also an option if you wish to continue using the skills that you have acquired during your working life, or if you want to learn new ones. Voluntary work is not only a great way to fill your leisure time, but you will be helping others and meeting new people at the same time. See our section on Volunteering for further information.
Other useful information
Information NOW section on Savings and investments
Information NOW section on Tax
Age Positive guide Flexible Retirement and Retirement
Contact Information
North East Pre Retirement Association (NEPRA)
15 Eastcliffe Avenue, Gosforth, Newcastle upon Tyne, NE3 4SN.
Telephone : 0191 213 0330.
Email : billionsncle@yahoo.co.uk
Article last updated August 19, 2008 1:56 pm
