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We understand that retirement may be a long way away for some, but planning this early could remove the risk of any issues later on down the line. There are no specific ages or rules when it comes to thinking about retirement, so perhaps now could be the perfect time to start preparing.
How to get retirement ready in your youth?
1. Save, save, save
When thinking about the future, one of the first things people do is open a savings account and begin depositing cash. Whether you have student loans or debts to pay off, it’s important to clear these first before you begin to properly save.
Besides working on your pension pot, don’t forget about building an emergency savings fund that could be useful on a rainy day. This is so you can avoid dipping into your retirement savings when those unexpected circumstances arise and you need quick access to cash.
2. Educate yourself
It’s worth brushing up on your knowledge of pensions before you start saving for retirement. There are a various types of pension, including a state pension, workplace pension or a pension that you set up yourself.
Most people have a workplace pension. Consider reviewing the percentage of how much you pay into this and how much your employer pays. If you’d like to contribute more, speak with your workplace or apply for your own pension.
You could also look into an equity release mortgage to unlock some of the value from your home. It’s a great way to take control of your finances and have that extra peace of mind when thinking about your future funds.
3. Consult with a financial advisor
If you’d like to get an insight of how to get ahead of the game when it comes to your retirement plans, start consulting with a financial advisor. They can offer you professional advice to help you plan and save the funds you need when you get to that stage in life.
Your advisor can help you put a plan together so you can reach your financial goals and get prepared for retirement.
4. Invest
Income-generating investments could be a good option for increasing your pension pot. These can include bond funds, income funds and multi-asset funds.
Investing in these funds can help hold your investments with a range of different companies. You’ll gain a clearer understanding of the share price and income, providing you with more certainty than making individual investments yourself.