Wednesday 16th of June 2010
Preparing for your retirement is challenging - and also worrying if you think you’re not going to have sufficient income to be able to get by once you’ve finished working. But it could be even harder for those with unsecured debts to negotiate.
Information on individual voluntary arrangements (IVAs) may, therefore, offer a solution for those of you who want to get your finances in order before you leave your job.
According to figures from Prudential, 35 per cent of women in Britain are set to have a retirement income below the poverty line, compared to 29 per cent of men.
And this could be stretched by hefty repayments on credit cards and personal loans, leaving an IVA a wise choice.
If you’re still in employment, but want to make sure you’re debt-free by the time you retire, the measure may offer a helping hand, freezing the interest on the cash you owe and merging your repayments into one monthly outgoing.
IVA info might, therefore, help to answer a few questions on how you’re going to free up income once your career is over.
"People should seek advice early to make sure they are well prepared for a retirement," says Vince Smith-Hughes, Prudential’s head of business development for pensions.
By Rachel Powell
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- Government announces 'breathing space' for those needing IVA help
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- IVA answers could benefit shivering Brits
