Are you planning for your retirement? How do you boost your pension? You can set up your pension fund and regularly put money in it.
However, how do you make your pension fund work harder for you and increase your retirement income?
Boosting your pension is not just about increasing your regular monthly payments. Also, it’s not about paying in a lump sum when you can.
Changing your investments is one of the best ways to boost your pension fund. Also, you can consolidate all your pensions in one place or even change your retirement date to give your fund more time to grow.
Bear in mind, though, that investments can fall as well as rise, and you might get back less than you invest. A few smart choices now could see your pension buy you a much higher level of income when you retire.
Saving your money
If you have just set up your pension fund, make sure you save as much as you can and start saving as early as possible, ideally from your first pay packet.
This does not mean going short but dividing up your spare cash so you have got some for long-term pension investment as well as some for short-term savings such as this year’s holidays.
Saving for your retirement does not mean just traditional company or personal pension funds. There are lots of other financial products that allow you to invest in stock market funds.
Also, some financial products help you make the most of tax-efficient savings. For a better understanding, please speak to a financial planning manager.
How much to save
As a matter of fact, exactly how much you pay depends on your income, any growth in your investment each year, and the time you have available to invest before retirement. But experts suggest the cost of delay is one of the main factors in how much you can expect at retirement.
As a rough guide, someone saving £100 as a month into a pension until age 65 may achieve a fund of over £150,000, whereas that same fund may be less than £70,000 if they left it until 40 before starting to save.
Manage and review your pension savings regularly, particularly if you have undergone any lifestyle changes such as being divorced, a new job, or being made redundant.
Regular reviews could also help you protect your investments against market volatility. By doing this, you will be able to see how your pension is performing.
It’s easy to do and will give you much more control over your pension planning. Use the planning tools to be able to determine how much your pension could be worth when you retire and the impact of paying in more.