Retirement Fun: What to Spend that Leftover Cash On

You have worked all of your life to save money, and now you have leftover cash in your retirement account. There are some fun things you can do with that money like vacations and dinners, or you can make a few improvements in life for fun that will last longer. 

Vacation Time

Instead of getting up early for work every morning, why not get up early to see the sun rise over the ocean, or take a walk along a mountain trail? Use some of the money you have leftover on a dream vacation. This could be a cruise, a trip to a mountain lodge, or a vacation to a beach to walk along the sandy coast. You will have plenty of time to enjoy your vacation as you don't have to worry about getting back home. Take the time to enjoy a good meal you wouldn't normally have at home, or go shopping for souvenirs to remember the trip. Retirement is the time to live out the dreams you’ve had all your life.

Learn a Little

If you want to stay at home instead of traveling, then consider adding an area in the home where you can read in comfort. Add a comfortable chair and bookcase to hold all your books. Learn about something you are interested in, but never had the time to read about. This could be anything from how to plant a garden, to reading about your favorite musician. You can also take a class at a community college to learn a skill you can use for a part-time job or hobby. 

Home Renovations

Now is the time to make your home look how you’ve always wanted. Add a new room for guests or put in that deck you’ve dreamed about. A Nanaimo custom home builder can give you ideas on ways to use a new room or how to update an existing room so it becomes more functional. Some home renovations in Nanimo might include new carpet, or new cabinets in the kitchen. 

New Adventures

Instead of sitting on the front porch swinging every afternoon, get out and enjoy life by going on an adventure you have always thought about. Take a hot air balloon ride over the city, or explore the Grand Canyon. Take a tour bus ride to a fun destination like Niagara Falls. Try kayaking down a relaxing river, or hiking up a mountain. The adventures are endless, and you can choose how often you want to go, or if you want to go with friends. Some adventures cost little to no money so you can save retirement funds for other fun activities or necessities. 

Become a Collector

Fill your home with stuff you like, and never had the time to collect while you were working. Put your efforts into collecting things you know you will cherish. Find something that holds a special place in your heart, such as precious stones, or American flags. If you have never collected anything, then go to a flea market or specialty store to see what your options are, before making an investment in something that will only clutter the home. 

Invest in Family

One of the best things that you can do is invest in family. Start a savings account so family members will have something to divide after you pass away. Create memories by taking everyone on a vacation, or get a family portrait made so you can have a special keepsake for the rest of your life.

You only have one life to live, and after you have worked through most of it, there are things you can do with retirement money that will make your later years more memorable. Whether it's adding a new room or simply taking a short vacation, do something that will make you happy.

Tax and Pension Related Challenges for UK Seniors

Tax code and general finance considerations become increasingly complicated as a person gets on in age. If you are over the age of 50 and approaching the age of retirement, make sure that you are aware of the following pitfalls and points of confusion faced by ageing citizens in the UK: 

Misunderstanding how pensions are taxed

You spend your whole life paying taxes on your income. Unfortunately, once you retire, this trend continues. However, the amount of tax that you owe on a pension depends on several factors, and it is easy to get confused regarding how much you owe – or even if you owe at all.

As an example, state pensions in the UK are not taxed below a certain level. You can read up on the specifics on how pensions are taxed on the HM Revenue & Customs website. However, the best way to proceed is to contact an accountant and have them assess your situation. Doing so ensures that you stay on the right side of the law without having to pay any more than is absolutely required. After all, every bit of savings counts when dealing with a fixed income. 

Finding the Right Forms

This is a problem that taxpayers of any age bracket can face. It is certainly not exclusive to seniors. The way in which tax forms are organised and prescribed is complicated to begin with, and anyone without a background in accounting or tax code law could be forgiven for being confused.

The problem is that filing an incorrect form can completely derail the tax return process. You may end up paying more (or less) than required. Likewise, filing an incorrect form could end up invalidating the entire return, subjecting you to further headaches (at minimum) or even fees.

Missing out on special credits and benefits

Every year, upwards of £5.5 billion in tax credits intended specifically for the elderly go unclaimed in the UK. These funds are made freely available by the government. However, the fact that their would-be recipients are unaware of them means that ultimately go unused.

These are a few common benefits that are often overlooked:

• Housing Benefit: This benefit is intended to help elderly persons pay for housing if they rent rather than own.
• Pension Credit: This benefit tops up your income to a guaranteed minimum level; roughly one in three eligible people fail to claim their pension credit. 
• Council Tax Benefit: This specifically applies to those who have disabilities or require special care.

Again, failure to understand what types of benefits are available to you could actually be costing you money in the long-run. With that in mind, seeking the services of a chartered accountant or financial advisor could actually end up earning you more money than you spent on the services to begin with. 

Mishandling your annuity

There have been a number of changes and revisions to the way annuities are handled in the UK. What many ageing Britons do not realise is that they are actually able to choose which firm they purchase the annuity through. Many are unaware that they can purchase an annuity from a firm aside from the one they have charged with taking care of their investments.

While it is refreshing to have more freedom and control over your financial future, this also exposes us to greater risk. Most importantly, long-term financial planning is not something that you want to attend to yourself if you do not have a background in finance. A single misstep could set you on track for financial ruin further down the road. With that in mind, consult the experts before you prematurely draw on an annuity. 

Counting on your pension before you qualify

Those who are nearing the age at which they qualify to draw a pension are likely to start making changes to the way they structure their budget, finances and assets. The problem here is that the government is constantly revising up the age at which a person qualifies. While new regulations are usually announced well before they are implemented, it is still possible that a person could end up banking on a monthly stipend that’s actually not even available to them for a few more years. Make sure that you know how the law applies to you before you make any major financial decisions.

Author: Kristen Rodrigues is a writer working on a freelance basis for Brebners, a company found in London and Kent that believes that they can help any business with their tax and accountancy matters.

Premium Dog Insurance Policy Types and Benefits

English: Little Bear, the 2009 Pet Mayor of Montclair (Photo credit: Wikipedia)

If you’re in love with your pet dog, then it’s natural for you to be concerned about its health. You’ll try to make sure that your pet remains in good health regardless of whether it is a matured dog, a young adult or a pup. However, health challenges may surface all of a sudden and you ought to prepare for it in advance. Make sure you pick a premium dog insurance policy without wasting time!

Check out policies that charge lower premiums and yield maximum coverage:

Life Time Insurance Protection

Your dog is bound to enjoy huge benefits with a life time coverage policy. These types of policies are usually more expensive than the other types of policies. On-going sicknesses may result from health challenges that your pet faces every year. A life time cover protects your dog from such challenges; a majority of your veterinary costs are saved once you enroll your pet for such coverage. Even when it charges a higher amount out-of-pocket, it proves to be a great policy in the end. For those that are really concerned about the health of their pets, it’s actually a great thing.

The Condition Based Protection

This kind of protection is meant to cover the specific health conditions of your dog. As the name suggests, this coverage is based on health conditions and don’t bear any limitations concerning time. Till the time you attain the monetary limit, you may claim as many times you wish to for the same health condition. However, a few insurance providers don’t cover specific dog breeds or follow restrictions on them.

The Annual Cover

When it comes to dog insurance, the annual cover is considered amongst the inexpensive forms of coverage. Once the policy matures, only then you’ll be able to claim the monthly premium. The reason why these types of policies appear cheaper is that they offer a much low claim amount. The fact that all dog health claims made during unforeseen situations are met, proves how beneficial the yearly coverage is in reality.

You must remember the following irrespective of the dog insurance policy you choose. In your attempt to identifying the best insurance policy, you must compare between all policies and opt for a notable insurance provider. The internet is likely to show you through a number of dog insurance policies. These policies will catch your attention with a variety of features, discounts and other offers. This confusion can only be resolved when you opt for a trusted online brand. Saving more on your dog insurance premiums is only possible when you see some quality discounts and offers. Choosing the right policy for your pet gets easier when you visit a policy comparison site; it helps you to take an informed decision.

6 Things You Might Not Think To Save Up For As You Get Up There In Years

There are numerous things you can do in preparation for your later years. Here are some important steps you should take as you approach your senior years in life. Here are five things you’ll be glad you saved up for when you start to get older.

Higher emergency fund

An emergency fund for someone in their 20s is much more for someone approaching retirement. Health care becomes more expensive as do common household repairs. Boosting your emergency funds to a higher level may be a good idea as you access your legal, health and homeownership needs.

Medical costs

Medical costs are additional expenses you must consider in aging. Many mistakenly believe that all of their insurance policies will cover care as they approach their later years. With the average life expectancy increasing, one has to be assured that there are ample funds to cover hospitalization, coinsurance and long term care if needed. This will prevent you from putting an unnecessary burden on your loved ones as you get older. People who had Medicare paid $38,688 for care during the last five years of their life, the National Institute on Aging suggests.

Dental Costs

After decades of chewing, drinking, maybe even smoking etc… your teeth are bound to get a little worn down. Some more than others obviously, but the proper care as far as brushing and flossing are always a good idea. Even with the proper care though, dental costs could add up in hurry if you’re frequenting the tooth doctor. Some of these costs could be as simple as a co-pay if you have dental coverage for a simple cleaning. Sometimes though, as you get older, getting more than a simple teeth cleaning done can become common. Dr. Peter Wong does dentures up in Surrey in Canada. More often than not, dentures end up being for those who are getting up there in years. Saving up for stuff like this when you’re younger is good idea. 

Downsizing

Homeownership is something many people don’t consider. When the children leave the home, the retired couple may want to downsize. This may mean taking out another mortgage on the home. Since the home should ideally be paid off prior to retirement, once should plan for closing costs, remodeling, moving and other expenses most often associated with moving into a newer, smaller home. This can be especially important if a person is planning to take out a 15-year mortgage. 

Catch-up contributions

Catch-up contributions give people over 50 the opportunity to catch up on their retirement. If a person reaches the age of 50, one can contribute thousands more over the annual limit. As of 2012, that amount is $22,500. This is good if a person decides that they want to retire a few years earlier or if circumstances happened when they were younger preventing them from saving on a certain level.

Long term care insurance

Long term care insurance is beneficial for those who may end up in a nursing home. Many families are surprised to learn that Medicare doesn’t actually cover the cost of long-term care. Medicaid also has its share of constraints. It cannot be used until the savings are practically depleted. When a person reaches their early sixties, long term care planning is recommended.

Here are five things you should save up for as you get older. Doing these things will prepare you and your family for life’s challenges as you get older. It’s never too late to start thinking ahead about retirement.