Money will be an issue throughout life, however once retirement is on the horizon the ability to create more income, work harder, longer, extra is no longer possible. With pensions being largely unstable and unreliable and savings losing value with every year, having a retirement savings plan has never been more important. It doesn’t matter what age you are, thinking about retirement savings is not a waste of time and it will the one thing you will most definitely thank yourself for later one. Today we are going to look at some of the main options available for those looking at retirement savings.
1.) Savings – different types
If you have accrued some money, then there are many different types of savings accounts that can help you to grow that money and not let it lose too much value with inflation. ISAs, Bonds and high interest accounts are all ways to make your money grow. To make the most of such types of savings accounts it’s a good idea to stay on top of all new information regarding high interest accounts and splitting your money between numerous types and renewing any bonds or ISAs that have natured. For this to work at its most effective its important to see this as a hobby rather than as a side note. Having said that there are things that pay off better than high interest savings accounts.
2.) Private Pension
Private pensions are not quite as reliable as they used to be, but still a good idea if you want to see larger dividends from your savings. A private pension works like private healthcare – you add some money in on a monthly basis and then when you retire you receive monthly payments that are sizeable when compared to what the government will grant you. Of course there is always a risk that the company will go under, but the risk should never be so great as to stop you planning for the future.
Depending on your age and income, what could work best for you is a business investment of some kind which will accrue value, deliver a revenue stream or else be sold at a higher rate than you bought it for later on in the line. Common safe investments of this kind make for excellent retirement plans. And if you are the type that is unlikely to ever stop working, then investing in this way will keep you busy for as long as you want it to. Safer investments are properties, gold and antiques whereas slightly more risky investments are stocks, shares, and businesses.
Note: Planning is the most important thing
Its important to remember that financial planning of any kind is something that one must be committed to and so thinking that there is a quick and easy one-stop-shop for safeguarding your financial future is not going to get anyone the type of future you can rely on, so plan, prepare and maintain any plans you have to make sure that when you do retire, everything is well taken care of.
Bill is a finance and retirement expert for Guernsey finance compant OracleFinance.gg.