Do you need to start saving for retirement?

This a paid guest post.

For a lot of people, saving for retirement might not seem like a big priority. Today’s young people are already struggling to buy their first home, so having extra financial goals to save for might seem an impossible task. Even though retirement might seem lightyears away, it is important to start saving as soon as you can. The earlier you save, the quicker you will be able to build an attractive sum of money to go towards your financial future. So why is saving for your retirement so important, and what are the best ways to save?

You may already be enrolled into a pension scheme with your workplace. While this, paired with a state pension, can get you on the right track towards saving for your future, it isn’t always the most lucrative way to generate your retirement fund. That’s why a lot of people choose to combine their workplace pension scheme with a personal savings account. The types of savings accounts that are commonly used vary between regular savings accounts or ISA’s. Lifetime ISA’s are regularly used in conjunction with a workplace pension as a way to boost your savings. These ISA’s allow account holders to receive a government bonus of 25 per cent on their saving contributions. This means that if you were to pay the maximum into your account each year, you could receive a £1,000 bonus every twelve months. Lifetime ISA account holders are able to start making contributions from the age of 18 to the age of 50. In theory, this means that a person that paid the maximum amount of £128,000 over 32 years could benefit from £32,000 worth of bonuses. 

The age of retirement in the UK is forever rising. By the time most twenty-somethings reach retirement, they’re likely to be around 70 years old. For a lot of people, retiring early is a much more attractive option, which is another reason to start saving sooner rather than later. The more you save, the better chance you have of an early retirement as this will provide you with money to live off until you reach official retirement age and can claim state or workplace pensions. One of the best methods people use when saving for retirement is investing. Investing allows you to boost your income and provides you with additional money that can be put away into savings accounts and used towards your future.

One of the most popular and most lucrative investment methods is property. Property investment can be used to generate a large sum of money through regular rental returns and through the property’s growth in value when you decide to sell your property later in life. Many people who develop a property portfolio find that they’re making enough money to retire at an earlier age than usual, producing a steady and growing income. One other quality that attracts many people to property investment is the fact that you’re able to pass on your assets to family members and ensure they continue to benefit from the income produced by your investments. 

If you do decide you’re interested in investing in property to help save for a strong financial future, be smart about it. Make sure you research the locations with the best rental yields, rental demand, and capital growth opportunities. Investing with a trusted company like RW Invest is also a good move as it puts you in safe hands and ensures you can receive expert advice on the right property venture for you. The earlier you start investing, the more equipped and knowledgeable you’ll be by the time you do retire, which will benefit any further investments and help you build a solid property portfolio. 

 

This is a paid guest post. 

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