Posted on: 16th July 2019
According to the DWP, a staggering 87 per cent of people were saving into a workplacein 2018. This is an incredible boost from 2012 when only 55 per cent of people were putting money aside for their future. So, if you’re worried about your pension savings, there are many reasons to think positive, and many ways to get the you really want.
Auto-enrolment is making great strides
Auto-enrolment is doing a wonderful job of encouraging people to save. If we dig deeper, however, it is clear that despite there being more people saving, they are saving less. Since 2012, the average amount saved has declined from just over £6,000 to £3,616 in 2018. This is due to a rise in people contributing only the statutory minimums.
For many, auto-enrolment minimum contributions will not be enough to give them the retirement they desire. But what can you do to make sure you have a retirement to look forward to?
Tips for saving for a happy retirement
1. See if your employer offers a more generous pension
Many employers offer more than the minimum or even match the employees’ contributions. Therefore, it’s always worth asking what’s on offer. Don’t forget, employer contributions are essentially “free” money. What’s more, you may find that you benefit from tax relief.
2. Pay in more yourself
It’s worth checking to see if you can afford to put a little more into your workplace pension yourself. For example, if you were to earn around £28,500 a year, an extra monthlyof £10 a month can mean an additional £13,060 in your fund after 40 years.
3. Start early save savvy
The earlier you save, the more time your money can grow. Though you will automatically be enrolled from the age of 22, you have the option to opt-in if you are younger. The sooner you start saving, the bigger your final retirement income.
4. Property as your pension?
If you are fortunate enough to own a home, downsizing later in life can be quite tempting as it can put more money in your retirement fund. However, it’s important to note that this isn’t such a simple process. A house that is half the size is not always half the value of your current property, especially if you wish to stay in one area. At the same time, you may not be able to sell your property at the time and price that you need.
Plan the best retirement with
There are, of course, many other ways in which you can better save for your retirement, but these are just a few simple tips to get you started. However, seeking financial advice can truly boost your savings and help prepare you for an enjoyable retirement. If you would like to learn more, then look no further than Haven IFA. We can sit down and discuss your financial needs to ensure you are making the best investments for not only your current situation but also your future. Get in touch to learn more about our services.