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Using Pension Release Funds Wisely

Read About Pension Release In The UK

After diligently working for the bulk of your adult life, you are normally rewarded with what is known as a pension release fund. Of course, there are many way in which this fund can be used to secure your “golden years” upon retirement. One of the ironies of life is the fact that these funds may not prove to be as lucrative as they were in the past. In fact, recent news has illustrated that some have even posted negative returns. So, what are some of the best ways to use pension release funds wisely and why do many individuals employ their liquidity partially towards funeral plans?

Prudent Investing

There are many who will choose to invest some of this money (particularly the 25 per cent lump sum payment) into different schemes. However, keep in mind that all that glitters may not necessarily be gold. There have been thousands of pensioners duped into investment “opportunities” that quickly turned south soon after their money was deposited. It is best to speak with a qualified financial adviser before attempting to make millions off of the money that you have earned over the years. Long-term stability is always much better than short-term growth. Higher risk always equates to higher reward.

Prepaid Funeral Plans

While it may sound a bit odd when referring to placing pension release funds towards your death, let us not forget that the cost of funerals has been on the rise in recent years. This is partially due to inflation and partially arising from the fact that there is a very real “boom” in the amount of individuals living much longer.   Without any type of prepaid funeral plans, your loved ones will likely be forced to pay extravagant out-of-pocket costs. This can be especially crippling if your funds have become depleted by this point. When we factor in the medical bills associated with a long illness, the risk here becomes very clear. For either a lump sum or with monthly payments, you will be guaranteed that a certain amount of liquidity will be released upon your death. In turn, this money can be allocated towards funeral costs such as transportation, burial services and a funeral director.

Knowing which pre paid funeral plans are the most appropriate can be challenging. This is the reason that we have put together a comprehensive “how-to” guide in terms of finding the best plans that suit your unique needs. Never forget that your pension release funds are not a never-ending source of income. Investing these funds wisely is the best way to secure the financial stability of your family in the event of your death.

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