Resolving the Pension Crisis: How to take Responsibility for your Own Financial Future

The pension crisis is well documented in the UK, thanks primarily to HSBC’s 2013 report which revealed that the vast majority of residents in developed economies are financially ill-prepared for their retirement. This issue came to the fore again in the UK this week, as potentially millions of female citizens may be forced to return to work because their pensions are inadequate for the purpose of funding their lifestyle after work. This is a major issue, and one that highlights both the lack of disposable income in Britain and the failure of the government to deliver a viable state pension to its subjects.

Is Life a Beach in Retirement
Is Life a Beach in Retirement

Securing your Own Financial Future: 3 Steps for British Adults to Achieve Long-term Solvency

If you remain someway short of retirement age, however, there is still time to adopt a proactive approach and reclaim control of your long-term financial destiny. Consider the following steps towards achieving this goal: –

1.       Make an Investment in Healthy Living

In the wake of the recent budget announcements, it is worth noting that the government always looks to lift taxation on unhealthy products such as alcohol and cigarettes. This way, it can boost the amount reinvested into the economy while also making a statement concerning unhealthy living standards in the UK. By making a commitment to refrain from drinking heavily, smoking and eating food products that are high in saturated fat, it is therefore possible to save considerable sums of money in addition to potentially extending your lifespan. The savings can be significant, and the subsequent capital reinvested into more fruitful endeavors.

2.       Think beyond Standard Pension Plans and Consider Additional Investment Options

Interestingly, the government may also be set to make pension contributions compulsory for both individuals and business-owners by 2017, which would certainly go some way towards providing additional security for citizens. Despite this, however, there may remain a pressing need to seek out more innovative investment options in 2014, whether this involves purchasing dividend shares or dabbling in your choice of financial derivatives. So long as you choose your financial market carefully and conduct thorough research, you can minimise risk and also maximise the potential return on your investment.

3.       Seek Financial Advice

On a fundamental level, everyone’s individual circumstances are different. This means that without a clear vision or experience of the financial marketplace, it is almost impossible to proceed unless you invest in professional industry guidance. Expert outlets deliver this to multiple clients, and place a keen focus on establishing long-term and mutually beneficial relationships with aspiring investors. This type of positive and personal approach is extremely productive, as it helps to nurture individuals and encourages them to learn the art of executing sound financial decisions over time.





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