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3 Alternatives to a traditional pension plan
Pension plans are really not what they used to be. There was a time when you could just contribute to your pension every month and be pretty sure of a healthy retirement fund.
Unfortunately since the global reccession many people have understandably lost faith in the system. If you have used an annuity calculator lately to predict what you have to look forward to in retirement, you might understandably be underwhelmed.
So in these uncertain times, what can you rely on for your future? Here are 3 popular alternatives to a regular pension…
Reverse mortgages
If you are are not worried about whether you have anything to leave your kids (or if you have paid off some investment property), this could actually be an option for you. Basically the idea is that you sell your house in return for a consistent monthly income. The best bit is that in most cases you can continue to live in your house.
Ok, so it does mean that you are giving away equity, but you can’t exactly take it with you. Your home represents a lifetime of saving, so why not make the most of your golden years and live a little with your hard earned cash?
Savings, ISAs and stuff
All a pension really is is a big chunk of savings put into someone elses control. So why not keep hold of your own savings? If you are fairly young and you have the self control to save consistently, you could have a fairly substantial nest egg by the time you are ready to use it.
Passive income
Why not take matters into your own hands? Many people around the world are beginning to take responsibility for their own income and building small, low maintenance businesses which provide a good income.
This isn’t easy, but it is certainly possible to build a very low maintenance income which could help boost your pension income and make retirement more comfortable…