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The word ‘pension’ and ‘retirement’ might not be keeping you up at night (yet), but with the UK population living longer than ever before, the need for a later-life fund with longevity has never been more important.
In fact, the lack of money we are regularly putting aside for retirement may be the result of UK adults underestimating the expected length of their life span and therefore, aren’t saving enough.
Research by the London Institute of Banking & Finance and Seven Investment (7IM) has revealed that only half (53%) of the UK’s over-50s feel well prepared for retirement. The study surveyed 2,000 over-50s with at least £50,000 in assets and 38% admitted the likelihood of them having to work longer than planned has increased. 47% went on to say they are aware they need to save more for retirement.
So, how can you save for retirement?
The answer is simply: start growing your personal pension pot now.
Below, we’ve outlined a handful of tips and tricks to help get you started:
Say yes to a workplace pension scheme
Having your employer pay money into your pension as this is one of the easiest way to ensure you are putting a monthly sum away for retirement. Many employers automatically enrol their eligible employees into a workplace pension, however, if you wish to withdraw, you can.
Automate your savings
If you have good intentions to save, but never actually get round to depositing a sum into your savings account, automation could be the answer you are looking for. Treat saving each month with the same respect you do your utility bills.
Read our article ‘Four reasons why automated savings will make your life easier’ for inspiration.
Make your money work harder
Whether you invest in a fixed bond savings account with a higher interest rate, or look to deposit a certain amount of cash each month with limited withdrawals per year, finding the right savings account has never been more important. It may seem like a lot of work, but you’ll get more bang for your buck keeping one eye on the savings market rather than leaving your cash in the same interest rate account.
Consider booking an appointment with a qualified savings adviser who can outline which type of savings account is best to help you maximise your pension pot and won’t leave you short changed in the interim.
Read our article ‘Savings explained: what different savings accounts are there?’ for further information.
Audit your utilities
Do you really need Sky and Netflix and Now TV and Spotify and Amazon Prime and…? You get my drift. The answer is probably not. Stick to the one or two you regularly use and cancel the rest. You’ll find the saving you will make each month adds up.
You could also save money by switching your utilities to a different provider for a better tariff; you’ll soon learn it pays to shop around.
Consider downsizing your home
It made sound extreme but moving into a smaller home can release much needed equity to boost your pension pot. Downsizing is also an effective way to fund other expenses such as a holiday of a lifetime or gifting a sum as a deposit to a loved one looking to step onto the property ladder. A smaller home doesn’t mean a decrease in lifestyle; it can actually enhance it.
Our article ‘Four things to consider if you’re thinking about downsizing’ breaks down the key considerations of downsizing.
If you’re thinking about saving for retirement or would like to discuss ways in which you can maximise your savings potential, pop into your local branch or contact us to arrange an appointment with one of our qualified savings advisers.
You can find a full list of our savings products here.