 |
| Source: Flickr |
According to statistics, you need around 75% of your final salary to enjoy a comfortable retirement. While you might be lucky enough to have an excellent pension, for most people this is an unlikely figure. Unless, of course, you plan ahead and start saving as soon as possible.
Today, we’re going to take a look at what you need to do to plan for a great retirement. Your working life will last a long time, and when you eventually make it to retirement, you deserve to put your feet up a little. Here’s how to get started.
Save more money, more often
There are different types of savings, so don’t get sucked into the idea that everything goes in the same pot. The money you save for a rainy day is entirely different to the money you need for a comfortable retirement. You could have anything up to around thirty years to enjoy when you retire – and that’s almost as long as a working life. So bear that in mind each year you put off starting a pension plan. The key to success is to start early and invest as much as you can afford.
Pensions
There are three types of pensions to think about – but don’t choose one over the other. A state pension will only give you the basics, so don’t count on that at all. Your company pension will come from your employer, and is worth investigating. In a best-case scenario, your employer will equal what you pay in each month, and in some cases they might even top it up even more. That’s free money for you, which might make you consider who you work for.
You should also have a private pension. It will help spread your risk around and gives you a better range of savings and benefits. Whatever you do, don’t cash this in early unless you have to. Early cash-ins are one of the pension companies favourite things in the world, which should tell you a lot.
Investments
Another way to save for your retirement is to invest. Now, you should only use money that you can afford to lose because you never know what might happen. You should also make sure you know your investment market inside out. There is plenty of help out there should you need it – from online blogs to college courses. For example, if you want to know about currencies, there is plenty you can read about on TradingFloor.com
Finally, make sure you spread your investments. All successful investors have a broad range of different markets in their portfolios. It is essential, as stocks, bonds and even property could lose its value overnight. However, there’s no doubt at all that wise investment over twenty or thirty years can have a significant impact on your returns. And if you want a comfortable retirement, it’s an obvious way to go.
We hope this has helped you understand how important it is to plan for your retirement. Ideally, you should start as soon as possible, but it’s never too late. However, the quicker you begin saving your money in sensible areas, the more you will enjoy your twilight years. Good luck!
