What amount of risk have you been ready to take in the Present Pension World

It’s said that there is a good news for the retired people that the Government will soon be giving an option to choose what they do with their pension pots. Though giving choice is a great thing we need to see how well it will be used by the retired people.

Every choice that we make builds our life the way we wanted. However, there is a saying that “Great power comes with great responsibility”, so one should be responsible and accept the choices that we made and the actions taken to achieve it. So the retired people should be prepared well in advance of what investment threats they are ready to take.

Though it looks like being able to draw money from the pension pot may seems like a pretty move there are few consequences that one should be ready to bear. Because, if you draw your money in advance and not able to put proper investment out of it, it should be you who has to suffer after your retirement or at the time when you are no longer earning.

Considering the current economic conditions, if one wishes to take income from the investments, which is a very bad idea as all the investments are performing very poor and absolutely no returns. We are seeing this situation since March 2009 so if one need income after his retirement has to plan and save as much as possible.

It’s very long that we have seen a good economy, during May 1990 when there is good economic growth, the annuity rates peaked up as a result which had a good retirement income and everyone faced high mortgage interest and inflation rates.

After 1990, the mortgages and inflation have become approximately three times more costly compared to today and in 1991, because of the increase in housing price around 100,000 people have become homeless by losing their homes. Only the long term investments turned out to be showing better results.

We have seen the rise and fall of the share markets from years but now looks like the good time has come and few of the economists are predicting that in 2015 there will be a start of swing in the market and the pensioners will have a choice to use their savings as they wish to.

From the analysis it’s known that there is slight increase life expectancy. The average life span has increased for nearly five more years so on an average a person can live up to 70 years easily.

However there is no clear idea of the market swing, but based on the analysis it is likely to increase in coming years. Though there is no proper solution for this economic downfall, it’s individuals responsibility to see that they have their retirement planned in well advance to lead a happy life by taking right choice at right time.