It is useful to do a 'before' and 'after' calculation for your income as well as your expenditure. The income list always looks a lot shorter than the expenditure list. But there may well be new opportunities to earn or make extra money.
Wages or Salary Remember to use the net figure. You may find you keep much more of modest earnings after retirement than higher earnings before (see Chapters 9 and 6).
Part-time Work Make sure that you do not lose your pension or social security benefits and that you pay no National Insurance .
Investments If you have money to invest, make sure that some of it is invested where tax is not it deducted at source and some where you can get at it quickly .
Pension from Your Job(s) Try to find out how your pension from your job will change, if at all, over the years. And make sure that you chase up all the pensions you may have earned during your working life.
State Pension(s) You will lose some or all of your state pension if you earn more than £79 a week .
Other Social Security Benefits Many social security benefits come with restrictions on earning or travelling abroad.
Any Other Income There are many opportunities to turn your time and talents to income once you are retired. Gifts from Relatives You may have relatives who are in a position regularly to assist you financially once you retire.
Your Home You may consider a home income plan or even letting a room.
Once you have written down estimates, all expenses and all income, you will begin to see how you will manage in retirement. Try to see just how much you will have to cut down to live within your means. This simple exercise will take a lot of the fear out of the prospect of retirement.
Most people retiring today have a pension related to their earnings in addition to their basic state pension. This pension can come from two sources � the state earnings related pension scheme (nowadays called SERPS) and/or a pension from your employer.
If you have had several employers, it is possible that you have an entitlement to several separate pensions. In other cases your contributions will have been transferred with you from job to job.
Since April 2010 almost everyone at work has had to pay into an extra pension scheme on top of the basic state pension. The exceptions are as follows:
� People under sixteen or over pension age pay no National Insurance contributions at all.
� People who earn less than a certain amount pay no National Insurance . . . ... see: Retirement Finances Pensions both State and Private