13:48 26 January 2013
Growing old is difficult enough. You lose your energy, you became weaker, and you are limited to some things that you can do on a daily basis.
It will get much more difficult and could possibly be unbearable if you spend your golden years not knowing where to find the money to buy food or to heat your own house.
That is why, it’s crucial that you save for your future as early as possible. If you’re currently employed, put 20per cent (if you can) of your income to your retirement fund. The earlier you start, the more money you’ll accumulate.
Instead of putting your money on your bank account, grow your savings by investing. You have several options when doing this. If your earnings are moderate, the best option for you is stakeholder pension, which is very flexible. With this, your funds are invested by a manager on your behalf.
However, if you want to have more control over your investment fund, self-invested pension plan could be best for you. In here, you can decide where to put your money.
When saving for your future and when choosing the best investment scheme, it’s important to know your goals and risk appetite first. How much do you think you’ll need when you retire?
By knowing this information, you’ll know how much you need to put into your investment fund so you can easily realize your goal.
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