How to Plan for Your Pension Fund
Posted in: LIFE AND HOME
If you are a young working adult, it may not seem like a pressing and urgent matter to consider. However, most experts will tell you that it is never too early to make plans for your pension fund. Besides setting yourself up with a solid pension plan, it would be prudent to periodically reassess the plan itself, just to see if it is still going to keep you comfortable throughout your retirement phase.
Although the general idea for most people about planning for pension is to save as much as possible while still trying to cope with everyday expenses and demands, they could not be more wrong. What your money can buy you today will definitely not have the same value when you retire. This effectively makes the value of your savings almost half its useable monetary worth. Such a discovery is not only alarming but it can also cause you to feel deflated and cheated. In the interest of “saving wisely” for your future retirement, the following are some options worth looking into so that you will be able to live the retirement life you envisioned.
Today is not too early to start.
You may have just started working but learning the habit of putting away a portion of your earnings is something that should be strictly inculcated from the very first pay check you receive.
Match your employer, pound for pound.
Some employers offer to match their employees workplace pension contribution, so it would be a good idea to put away as much as possible. The more you choose to put away the better for your pension, because this amount will double in the end as your employer contributes too.
Contribute towards your pension plan goal.
You could explore the possibility of opening your own pension plan. Besides the obvious benefits, you would also be able to claim tax relief on these funds. There are a couple of different types to choose from, so decide which one would suit your financial situation best.
Consider auto enrollment.
If you are incapable of being disciplined about putting away money for your future pension, then sign up for “auto enrollment” and have the funds deducted from your earnings automatically every month. This workplace pension scheme is more convenient and doesn't take much of your time.
Setting reasonable goals.
If you have your eye on a particular long term returns type of investment plan, then start reigning in your spending habits so that you will be able to put together the required investment amount needed.
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