Are you curious about the best ways to save for retirement?
It’s never too early to start planning for your future, and ensuring you have enough money aside can help put your mind at ease about living comfortably in retirement.
Here, we discuss our 7 best ways to save for retirement in 2021:
Maximise Your Savings
It’s a good idea to do some research into the best ways to hold your savings. There are various options available, including savings ISAs, lifetime ISAs, and pension plans.
Each option will benefit you in a different way, so look into what you want to prioritise to help you decide – ie., flexibility when accessing the money or tax/interest rates.
If you are employed, you may automatically be enrolled into a workplace pension. You can check online to see the current status of your pension; this will help you plan accordingly.
Best Ways to Save For Retirement: Prioritise Your Money
Work out what your current pension plan is and decide how much you will need to put aside each month to reach your target.
Set up a direct debit into your savings account so there’s no temptation to spend the money elsewhere. This will help you stay accountable for your future finances.
Clear Any Outstanding Debts
If you have any outstanding student loans or credit card payments, it’s a good idea to factor in how you can get them paid off sooner rather than later.
Heading into retirement with debt may add unnecessary stress to your retirement. Try to set up a plan to reduce any outstanding payments so you can head into retirement stress-free and get ready to relax.
Do Some Research
You may want to enlist the help of a financial advisor to help you release any money you may have tied up, or plan how best to work with what you’ve got.
Professional help and plenty of research will help you make the most of your savings and pension.
Downsizing may be a good option to consider for two reasons.
Firstly, you’ll release any extra money from a larger house to add to your retirement fund. This will significantly help to boost your pension.
Secondly, downsizing will mean fewer maintenance costs each month. You can then put aside any money you save and put it towards your future.
Set up a Side Business
Working part-time or setting up a small business can help to boost your income alongside your pension and savings as you approach retirement.
If you’re worried your savings won’t be enough, or you simply don’t feel ready to give up work entirely, it might be a good idea to look into how you can turn a crafting hobby into an extra source of income.
Have a Clear Out
Another great way to boost your income and add money to your retirement savings is to have a clear out of your home and see if there are any bits and pieces you can sell.
You may decide that, as a smaller household, you only need one car rather than two. Alternatively, if you are downsizing, you may find that you can part ways with some of your furniture.
Why not take a look at our previous blog to see why assisted living might be the right choice for your retirement plan?
For further information about Extra Care Living, or to discover more about the best ways to save for retirement, get in touch with us.