Whether you’re just starting out in your very first job or are winding down for the final few years of working, retirement should always be on your mind. Obviously it will become a more serious issue the closer it becomes, but you should always have a plan in place to ensure you are financially secure when it comes around.
Most people will be enrolled in a workplace pension scheme, but recent research has found that the average contribution rate is just 4%, which is worryingly low. There are a number of available options for savers of all ages to boost their retirement funds.
The government’s workplace pension plan is a great idea, with employers matching employee contributions. It has increased the number of workers putting in to a pension yet there are fears that it will not be enough to lead a comfortable life once retirement rolls around. Supplement a workplace pension with a personal one too, many of which offer professional financial and retirement advice.
A quick and easy way to increase retirement funds is to simply increase contributions to your existing plan. If this is just a workplace one, then your employer should boost their contribution as well, ensuring you have more savings by the end of work. However, be sure to budget beforehand so that you know you can afford to increase the amount being pledged to your pension fund without losing out in the modern day.
Outside of pension schemes there are various options open to increase your retirement savings. Recent data has shown that buying property can be a far more profitable, if slightly riskier, route to take than a regular pension. Residential and commercial properties are increasing in value rapidly in certain areas, with some showing little chance of slowing down. You could go in alone or with a partner, then sell or rent the properties out when it comes to retirement.
There are all sorts of financial investments, from stocks and shares to commodities, which can be invested in over the long term. Find a new start-up that looks like it may do well or put some of your retirement savings behind a fairly safe company and they could increase in value over time. Long term precious metal investments are another option, but decide which ones suit your needs before backing with your own retirement money.