Whether you are set to retire in three or thirty years it should be on your mind already. That is because to ensure you can properly enjoy your retirement you need to start planning early. While some governments provide a pension it will be just enough to survive on so if you plan on living your retirement to the fullest start putting some plans in motion now. Here are our top five tips.
Own some assets
Buying a house or some other asset that will increase in value is a great idea for retirement. A house, in particular, will allow you to stop paying rent, will be somewhere that you can live when you retire and will only increase in value (ok housing bubbles show that is not strictly true but in the long run, houses do increase). Rent is the greatest waste of income possible and the sooner you can move away from paying rent the more you are saving for your retirement.
Ensure that you have some savings in a compound interest account. This is likely an account that you can’t use regularly but with fantastic returns over time. Talk to your local bank this week about how you can improve your saving options based on your retirement.
Company or Government scheme
Ensure you are making the most of any government schemes. Often they will have something in place that whatever you save can be matched by your company (to a certain limit). This is essentially free money and it would incredibly foolish not to take advantage.
If your retirement is still a few years away than you could try investing your money. While this may sound like a risky option there are many low-risk investment opportunities that will suit even the most conservative saver. There are plenty of companies today that will do most of the leg work for you and even some apps with AI capabilities that help to recommend what to invest in.
Make your money work, not you.
The best way to plan for retirement is to avoid the 9-5 slog. If you are turning up to work every week and cashing a paycheque then you are still working on an hourly level. You need your money to be working while you relax. This means investing in businesses, setting up your own companies and more.
Overall the key to retirement is to plan while you are young. The later you leave the less you will have. While you may feel you are already behind, you aren’t. The perfect day to start is today.