We all want to know that our pension is taken care of and that we can look forward to a happy, healthy and wealthy retirement. But with the best will in the world, many of us bury our heads in the sand and hope the future will take care of itself, particularly when we are too busy juggling the present. Here are some top tips on how to save for a happy and wealthy retirement.
How Much Money Should You Be Saving Each Month?
Money saving expert, Martin Lewis, suggests that a good rule of thumb is to take the age you start your pension and halve it. Then use this figure as the percentage of your pre-tax salary that you need to save each year until you retire.
Write it Down
It sounds obvious, but make a retirement plan and write it down, this will make you more likely to stick to it.
Get Good Advice
If you want to get the best outcome for your pension savings, you need to invest wisely. Getting advice from a trusted and reliable Independent Financial Adviser is essential.
Saving for a pension is a bit like saving for a holiday. If you want to enjoy the lifestyle you’ve become accustomed to, you will need to do some serious saving and a good deal of planning. It’s important to be realistic about what you need to save and over what period, to get the income you need for retirement.
Save, Save, Save!
Saving the most you can afford each month will ultimately pay dividends. It’s the difference between just getting by and enjoying that new found freedom you have. Remember that when you stop working you’ll have much more free time on your hands. If you don’t have the finances to sustain a lifestyle, it will be a pretty grim retirement. Take a leaf out of our ancestor’s books. For every penny they earned – they saved a penny. Which is why many of them are enjoying a happy and wealthy retirement.
It’s not just a Matter of Age
People put too much emphasis on what age they should retire when it should be more about when you can afford to retire. A good Independent Financial Adviser will help you plan how much of a nest egg you need to maintain your lifestyle, what you need and can afford to save, and plan when you can leave the workforce.