According to research, those approaching retirement have a number of financial regrets, with the biggest being that they wished they had started saving for retirement sooner.
For those currently in work, having an appropriate financial plan in place could be the difference between enjoying a comfortable retirement or struggling. It’s important now to make the effort to save and plan for your future; you’ll reap the benefits further down the line.
Here are a couple of places you may wish to start to plan for your retirement.
A pension plan
Pensions were big news towards the end of last year, with auto-enrollment being put in place. For those of you working for big companies, you will already be enrolled on a company pension scheme (unless you opted out). But is that enough? What about those who aren’t covered by the scheme yet? For a little extra protection for retirement, a personal pension such as UK self-invested personal pensions could be your ideal option.
A self-invested personal pension is often referred to as a “do it yourself pension scheme”, and it’s exactly that. In basic terms, it’s a pension which enables you to make all the decisions as to how and where your pension pot is invested. It might seem like a daunting prospect at first, but with a little advice it could really help you boost your pension savings come retirement age.
One of the biggest concerns many people make when looking at a SIPP as a potential pension option is the cost. Once considered pensions for the super-rich, it was the costs that put people off. However, now there are a number of low-cost options on the market, offering low joining fees and discounts for a specific number of trades. SIPPs are now effectively for all, and with a wide range of investment options, it could be the ideal way to rule out any money regrets when it comes to retirement.
A savings plan
While pensions are in place to ensure you have something in place for retirement, you also need a savings plan to run alongside it. Most people will start with an ISA, as these offer tax incentives for savers. Whilst from the outset a cash ISA may appear to be the easier option (they offer tax free saving), to really boost your savings for the future, a stocks and shares ISA could be your perfect choice.
Offering a tax efficient way to invest in stocks and shares, as well as trusts and bonds it may seem like a risky option (as is always the case with investing, you could lose out on what you put in), but with some good investment decisions you could in time grow a significant savings pot for the future.
You don’t want to have any money regrets when the time comes. It’s time to put a plan in place now.