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What do you want to do with your retirement? Travel the world and see the sights, buy that dream home in the country, or simply enjoy the time you have with your loved ones. Whatever and however you plan on spending your retirement, none of it is possible if you don’t save the pennies.
Having a retirement and pension plan in place is a must to ensuring you can have a comfortable and care-free retirement. Many people are unsure as how to go about saving for a pension, how much they should be saving and how much they could be gaining.
By acquiring the services of an established financial planners, ideally who specialize in retirement and pension planning, you can receive trusted and knowledgeable advice. A personal financial planner will take the time to sit with you and outline your options, answering any questions you may have.
So what things are worth thinking about to ensure you’re getting the most out of your pension?
1. Start Saving Early
The earlier you begin to save, the bigger return you will see in your pension fund. Starting earlier with a smaller amount is healthier for your finances as people in their twenties are often just starting out in their career. Make sure you can afford to live before increasing your contributions!
2. Workplace Pension Schemes
By enrolling on a workplace pension schemes, such as the new NEST Pension Scheme, you can begin to manage your contributions in sync with your career progression. NEST Pensions are a one-pot fund which allows easy access and stays with you throughout you career, making saving for your pension that little bit easier.
3. Contribute More
Managing how much money you employ into your pension can often be overlooked and under-appreciated. Many people are unsure as to how much they should set aside. Again, in your twenties you are just beginning to save so 12% of your income is a good place to start, rising to 20% by the time you are in your mid-thirties.
4. Don’t Splash Out
Try to refrain from splashing out when you receive a pay-rise, work bonus or financial benefit and consider making an additional contribution to your pension. Whilst living in the moment is a nice philosophy to live by, you really could begin to see your pension grow in later years.
5. Pay Off Any Debts
Before you consider saving, you should look to pay off any debts, loans and outstanding payments you may have. This will not only give you peace of mind, but put you in a steady financial position when it comes to addressing your savings accounts.
Reap The Benefits By Saving