Want to live in luxury as you see out your golden years? Looking forward to an easy retirement? Portafina has compiled the best tips around to ensure that you can spend your retirement enjoying the rewards of your working life.
If you want more tips to ensure your retirement is fruitful, follow Portafina’s Facebook, or their other social media accounts, including Twitter, YouTube and LinkedIn, or speak to an advisor on the Portafina website.
Step 1: Save When You Can
Your retirement funds won’t grow on a tree, and the best way to make sure that the tree keeps growing is to invest in your future now. By putting away money from each paycheck, you will ensure that your pension funds grow large enough to keep you living the life of assured luxury in your old age – and ensure that you can retire when you want. Not only this, but you can also benefit from compound interest, making thousands more profit the longer you save.
Step 2: Track Your Pension
Tracking your pension on an annual basis may seem like a bore, but it is vital that you do so to ensure that your pension is growing as expected. Without checking, you may find that you retirement is far from sun, sea and sand. However, by tracking your pension you will be able to adjust your investments, and check that your pension is still providing you with the future of your dreams.
Step 3: Increase Your State Pension
At £115 a week, it may be difficult to have the life of luxury that you have envisioned. Instead of moping about it, there are many ways in which you can increase your state pension and ensure that your working life has been leading up to something exciting. You can decide to pay voluntary National Insurance, which is extremely important if you are self-employed, or you can set up an independent pension fund which can support all your elderly coach trips and other luxury expenses.
Step 4: Weigh Up Equity
Although equity might look like the easy way to pay for that dream holiday in one lump sum, equity has many downsides too. You should be sure to take these into consideration before making any drastic decisions.
Step 5: Research Annuity
Many retirees who are short of money – or simply want the high life – decide to buy an annuity to ensure that their funds increase. However, you should research the best annuity for you, as over 80% of annuity investors could have got a better deal. Instead, you should consider the open market for all your annuity needs.
Step 6: Don’t Opt-Out
You have to wait for luxury, and some extra cash in your youth can detract from that easy retirement you have envisioned. Instead of opting-out from work pension schemes, you should take full advantage of them. By doing so, your employer will be contributing to your account with only 1% of tax costs, in addition to your own 0.2% tax contribution.
Disclaimer: The information in the above article is not financial advice. For any financial decisions you need to make, it is highly recommended you talk to a qualified financial advisor before you commit to a decision.