Most people have a desire to retire at some point, so it’s a good idea to start thinking about it as early as you can. Here are a few small steps you can take now to help you be better prepared for retirement:
- 1. Start saving now
The earlier you can start investing, the better. As you progress through your career, you can increase your contribution gradually. Waiting until you are older, will most likely result in higher contributions needed to compensate for the ‘missed’ years.
- 2. Investigate your company pension scheme
It’s also worthwhile looking into what your company pension offers you, because your employer will usually contribute into that too – so you get extra savings on top of what you can afford to invest! If you’re not eligible for a company pension scheme, there are other savings options you can look into.
- 3. Think about what you might want to do in retirement
Will you be doing the same things you’re doing now? Will you want to go travelling more or visit family? Thinking about this now enables you to have an understanding of what your retirement may cost and how much you need to save.
- 4. Use online tools
There are many online tools that you can use to work out how much you will need to save in your pension to get a rough annual amount that will support your retirement lifestyle. You may have access to tools like this via your company pension scheme so you can see exactly what you’ve got and what you can expect.
- 5. Get some guidance
There are different ways you can save for retirement and different ways to take your savings when you do retire. If you’re worried about it, confused or you feel like you might need some professional help, see what support options your employer offers.
- 6. Don’t forget about it!
Once you start saving it’s easy to forget to review it, but don’t! You need to review your retirement savings regularly to assess whether you are on track. It is good practice to also check on your other finances to see if you could afford to save a little more into your pension. Maybe you could cut back on some non-necessities to help you put more towards your future!
- 7. Think about what you may lose
Your employer may provide you with various benefits in addition to your pension, such as life insurance, critical illness cover, private medical insurance, travel insurance, health cash plans or dental insurance. You may wish to explore your options to continue coverage as an individual.
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