13:55 05 March 2013
Today’s world is experiencing economic struggles in a variety of ways from unemployment to inflation. You may have been safe in the past to wait until you were in your forties before worrying too much about retirement planning, but the fact of the matter is that the sooner you start saving and planning, the more stable your retirement will be.
Here are a few ways you can begin your retirement planning now so you’ll be prepared for the future:
•Start by doing a little bit of research. Find out if the company you work for makes contributions into a pension pot. If they do, find out when that begins or if they offer a matching option. Specialists advise to take full advantage of any company matching policy.
•If you get some unexpected money consider opening low-risk cash ISA or a higher-risk stocks and shares ISA. Instead of spending the money, let it sit in an account and accumulate interest. The next time you get more money, add it to the account for a nice snowball effect.
•Try to deposit the maximum amount into your ISA account each year. This is great for retirement planning, but also in the event of an emergency. Funds can usually be accessed right away just like a regular savings account.
•If you’re able to invest the full amount into a cash ISA or shares ISA but you want to stash more money away for economic hurdles or a rainy day, open a regular savings account. You may have to make monthly deposits so check with your bank for details.
These initial steps will put you in a great mindset to save for your future and you’ll be years ahead in your retirement planning.
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