Workers urged to focus on pensions

Retirement incomes will not be sufficient for people who fail to take the time to understand their pension provisions properly. People need to place a greater emphasis on getting to grips with their pension schemes. Workers who don't understand how their pension and Annuity decisions will affect their retirement could end up losing up to half of their pension income unintentionally, according to an advice group. A greater number of people are being forced into using their pension pots to purchase an Annuity after they stop working as more companies veer away from final salary schemes towards defined contribution schemes. However, pension advice organisation Retirement Angels is warning that many people do not realise the importance of buying the right Annuity.

Six quick tips to improve your retirement income

Whether you are thinking that retirement planning is still a little way off or you want to turn your pension into an income now, here are a few quick tips to help you get best result possible from the money you have managed to put aside for later in life. 1. Remember stock markets fall as well as rise 2010 has for the most part been a positive year for investments, however significant corrections have a habit of occurring at the most inconvenient of times. In the months and years leading up to your retirement think about where you are invested; should you move from equities into more secure assets to protect the pension money you have built up? How should you protect your funds against possible falls in stock market values?

Couples fail to plan for pension income in case of death of one partner

More than half of over-forties yet to retire could lose their pension if their partner dies according to a survey carried out by pension provider Prudential. The firm surveyed over 1000 adults and found that less than a fifth of participants had talked about the difference between joint or single life annuities with their other half. It also concluded that almost 40% of couples have failed to make sure that their pension income will continue to be paid out in case of the death of their partner. About 13% of those polled said they did not know what would happen to their pension income if their partner were to die.