Saving for retirement is something we all know we should do. However, not everyone in today’s economy feels that they are able to put anything into savings exclusively for retirement. Most people in the UK workforce today rely totally on their pensions to provide for their expenses in later life.A recent report estimatesthat only about 32% of women and around 35% of men have a savings plan aside from their pension.
What Will Your Expenses Be Like?
It can sometimes be hard to envision exactly what your needs will be in the future. However, when thinking about life post-retirement, there are a few things that you can assume you’ll need to be able to finance. These things include such items as housing, food, and medical care. There is also a good chance that at some point you will need to set aside some money for support, whether you opt for a long term care facility such as a nursing home, or private care at home, there will still be costs to consider.
If you work for an employer who offers a pension plan, it’s a good idea to utilise that as a savings tool. The employer contribution, plus your own, is a great way to start saving. It is also a good plan to start saving some of your own money when you can. Even if it’s not very much at first, having a savings account dedicated to financing retirement can be a great way to grow a little nest egg that could be used to purchase property, or to start an investment portfolio to help grow that money even more.
You have some alternatives when it comes to an investment portfolio. The first thing to decide is if you would like to manage it yourself, or have an investment firm do the legwork for you. Many people prefer to have someone else invest their money, although if you have the drive and knowledge to do it yourself, you will save the bit of money that hiring a firm would cost you. Because most people prefer to not invest their retirement savings exclusively into higher risk schemes,a diversified investment portfoliois generally recommended.
While retirement might seem quite a way off to some of us, it’s always a good idea to start as early as possible. Even a little bit here and there will be more than you had before and will be sure to help you down the road. No matter what your plan is after you consider your options, the most important thing about any plan, is to make sure you have one. Doing so can only help your future self down the road.