WHY YOUR PUBLIC SECTOR PENSION MAY NEED AN EMERGENCY BUDGET

 

 

‘The question isn't at what age I want to retire, it's at what income.’ 

George Foreman

 

1.      When You Have To Revise Your Plans

 

Where money is concerned, sticking to a long term plan is normally a good idea. However, the world can and does change quickly. As the new UK Coalition Government has already signalled its intention and determination to limit the cost of public sector pensions to the state, now might be a good time to review your financial objectives, update your plans and see the opportunity that change provides.

 

Whilst nobody in the public sector is likely to welcome working longer, harder and paying more for less, that is the likely fate for public sector pensions. If that applies to you, then you have to deal with it. Increased contributions, and caps on payments are future options, so it is now critical that you make sure that what money you can set aside for retirement is invested as wisely as possible. You do have options.

 

2.      They Say Jump And How High

 

Whilst you cannot directly influence the level of increases to future public sector pension schemes, you can take steps to reduce the negative impact of future changes.

 

3.      Make A Change

 

‘People don't place their trust in government or company pension plans; they have to be self-reliant.’
                                                                Scott Cook

 

 

 

 

 

 

In times of greater hardship and austerity, take some time to review your finances and make some changes. It could be that the money you had put into an ISA could be doing a lot more for you than you think. Why not take some independent financial advice? It could be the best investment you make this year.

 

‘Don't simply retire from something; have something to retire to.’

Harry Emerson Fosdick

 

4.      Plan To Adapt

 

The best plans are flexible enough to accommodate and embrace change. As the author of a book on how to invest and make money from stocks and shares, I am somewhat biased towards stock market based investments as the best way of achieving your financial goals, but an independent financial adviser can advise you in a range of possibilities and options, and steer you in the right direction to achieve your financial goals in a way that might not be as difficult as you think.

 

Online websites such as www.unbiased.co.uk provide a range of signposts to helpful information and independent financial advice, and you can get a wealth of additional advice from the Financial Services Authority at www.fsa.gov.uk.

 

Whatever the future holds for public sector pension schemes, and how much they will cost public sector workers, by taking some time today to plan for tomorrow, you can start to think like George Foreman and concentrate less on what age you would like to retire at, but rather, what income.

 

Jamie E Smith is the author of making Money from Stocks and Shares

 

 

 

 

 

 

 

This content was provided by one of our users, Jamie