How to save up for retirement
Although you might be feeling the strain of working towards retirement, there are many ways in which you can ensure that you save up for retirement without diminishing your current funds.
By using a few money-savvy tricks, you will soon be able to save up for retirement stress-free. The pension advice specialists at Portafina have complied a list of the best ways to save up for retirement and increase your pot, as outlined below.
1. Opt-In to Your Workplace Pension Scheme
Although you may think that you would rather have the extra cash now, opting out of your workplace pension scheme may be something that you regret later in life. If you are over 22 and earn over £10,000 pounds, you are eligible for a workplace pension provided by your employer. By taking advantage of this, not only will you be saving extra cash for retirement, but your employer also has to contribute to your savings, the loss of which could mean that you lose out on thousands of pounds.
2. Check if You’re Eligible for a State Pension
Many people presume that everyone who works is eligible for a state pension. However, this is not the case, as you will have needed to pay National Insurance for 35 years before you can gain access to the state pension. Therefore, if you are relying on a state pension to see you through retirement, you should not hold off on checking whether you are eligible. If not, you can make voluntary contributions at will, or find out more about the state pension on Portafina’s Facebook Page.
3. Track Your Pension
Although you might believe that as long as you pay into your pension regularly, that it will grow at the rate that you want it, this is not always true. High interest rates and an inadequate pension scheme can ensure that your pension stagnates over time. Therefore, it important to check so that you know exactly what to expect and to make any vital changes necessary. You should track your pension’s performance regularly, which you can do through Portafina’s pension review scheme; click here to discover more now.
4. Claim Full Tax Relief
If you are money savvy, you will know that you can claim back tax relief on pension payments, which is essentially free money given by the government, which you can put towards your funds. If you are paying a basic rate of tax, this will be taken back by your employer or pension scheme, whereas if you pay a higher rate, you will have to claim this back direct through HMRC.
5. Speak to a Financial Advisor
If you need help when saving for your pension, you should consider speaking to a reliable specialist who can help you to improve the amount which you are saving. Expert financial advisors like Portafina can help you to make the most of your money and give you advice on how to save efficiently.
6. Boost Your Pension Fund
You should also attempt to pay into your pension fund on top of regular contributions. Although this is not always possible, boosting your pension fund with extra money will ensure that you are making the most of your fund when you can.
7. Be Annual Allowance Savvy
You can only pay a set amount of £40,000 into your pension each year. However, to avoid tax charges, you may want to consider carrying this over, which you can do from up to three previous years if you have used up your current allowance.
8. Utilise Multiple Pensions
Most people have a string of jobs behind them, many of which may have had a workplace pension. If you believe that you earned enough to start a pension in previous employment, you should make sure that you can access the money to these and use this to your advantage.
Saving for retirement is a reality you need to face, sooner rather than later. If you want to find out more about saving for your pension, you can contact Portafina on their Facebook page, Twitter, LinkedIn or Youtube accounts.