13:34 04 March 2013
You’ve probably heard that there are no guarantees in life. Retirees have sometimes discovered unfortunate truths when the laws regarding pension pots changed and caused potentially devastating effects.
While some planning for retirement worry that pensions are not a secure option, there’s no need to avoid them yet. Here are a few different ways to plan for retirement and maximize your financial growth.
•Contacting an Independent Financial Advisor (IFA) is beneficial to help you sort through all your options and ensure you understand all of the regulations and minor details.
•If the company you work for will contribute to a pension pot take advantage of that. This is like free money for you and there is no sense in refusing to claim such a benefit.
•When planning for retirement figure out if you are comfortable only with low-risk
investments, or if you have enough time to try some high-risk investments. High-risk investments typically have the potential to earn a great deal more in a shorter amount of time, but not everyone is comfortable with this approach. If you prefer a middle-of-the-road approach you may consider partitioning your money into both low-risk and high-risk accounts such as ISA.
•Consider adding an ISA to your financial plan. Cash ISAs are low/no risk and interest is tax-free. Stocks and shares ISAs are a higher-risk investment with potential for losses and gains according to the market trends. Interest rates are typically higher than regular savings, so begin with these first. They do have an annual deposit threshold.
•Regular savings accounts are another aspect of a solid financial plan. The benefit of this is that there is no annual cap to your deposits.
Contact an IFA for help planning for retirement about ISA.
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