How Can I Save for My Retirement?
Many people around the world ignore saving for a pension and push it to the back of their minds. However, this isn’t always the best way to look at your future. Setting up a savings fund now or starting to consider saving for your retirement is a good idea, despite your age. It doesn’t matter whether you’re 22 and have recently been auto-enrolled into a workplace pension scheme, or if you’re 65 and looking for some form of income to boost your savings. There is something you can do.
Despite the fact there is a state pension that everyone is entitled too, it is unlikely that it will be enough to provide an income you need. This is why it’s a good idea to build up some form of retirement savings. Even if you think it’s too early to start savings, it’s definitely not! Remember, the sooner you start saving, the more money you will have in future, and the more your future self will thank you.
Get a lifetime cash ISA
If you are aged between 18 to 39, you can open a Lifetime ISA and save up to £4,000 tax-free every year. The bonus is that the government will contribute 25% extra into your savings pot up to a maximum of £1,000 a year until you’re 50. There are two reasons people start a lifetime ISA as there are only two times you can use it. With this ISA, you can either buy your first home/property or withdraw the money when you are 65. If you’re fortunate enough to be able to save £4,000 a year (which is £333 a month), then you can get the bonus every year. If you were to do this from the age of 20 till you could withdraw at 50, you would essentially get an extra £30,000 for free from the government! Adding this to your £120,000 saved would give you £150,000 for your retirement, which is an impressive figure.
Invest in the property market
Many people omit the chance to invest in property as they don’t see the huge benefits. If you’re lucky enough to have a large amount of money available to buy a property or can get a mortgage; a buy to let property is a great way to earn an income after you’ve retired as well as save up. Those of you who are unsure about the prospect of property investment may want to speak to experts like RW Invest. They’re a property investment company who specialise in student and residential buy to let properties. Speaking to someone who knows what they’re talking about and can advise you on certain things will ensure you have a smooth and successful investment journey. Buy to let properties in city centre areas have high rental yields of up to 11%. It’s no wonder that people decide to invest in property as a way to save up for their retirement!
Try a workplace pension plan
Possibly the easiest way to save up for your retirement is to start contributing to your workplace pension. Auto-enrolment means there are minimum contribution levels, but if you can afford, you should contribute more. Essentially a workplace pension is a pot of cash that you and your employer can pay into (which you also get tax relief on). It is an effective way to save up for your retirement. Even if you don’t do anything else to save up, at least use the pension as a way to secure your future and feel financially comfortable retiring.
Press Release Distributed by The Express Wire
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