Suggestions for retirement investments
Here are some tips to help you get started planning your retirement savings.
06:48 26 December 2013
Many people are worried about running out of funds during retirement. It is not uncommon for retirement to last between 20 and 30 years, so this is a valid concern for most people.
Here are some things to keep in mind when planning for retirement.
- The State Pension pays you for as long as you live, regardless of the number of years after retirement.
- If you have any personal pensions or other company pensions, you should also receive payments from those for the remainder of your life as well.
- The longer you live, the harder it may become to support your needs. There may be increased expenses due to declining health, but there are also inflation costs to consider and the general cost of living will not remain the same as it is now.
- Remember to only invest funds that you can technically afford to lose. There is no guarantee that the market will provide a great return, so all your extra money should not go into investments unless you already have a savings account and emergency fund that can help support you if you encounter difficult circumstances.
- The types of investments you have can make a huge difference on the amount of money you earn, and on the stability of your funds. If you try to find lower-risk opportunities, with a higher rate of payout it is best to invest a sizeable chunk of your funds into such a fund. Do not forget that there are pooled funds that give you a more secure option. Property, bonds, ISAs, and business ventures are all options for investing money.
If you are trying to plan for retirement, but are not sure where to begin, consider the points in this article for some helpful suggestions. To get more personalized advice, seek help from a professional financial advisor.