Financial security in retirement doesn’t just happen it takes planning commitment and money. Putting money away for our retirement is a habit we should all put into practice. Seek the advice of a professional financial advisor to help you to plan for your retirement.
If you are already saving whether for retirement or another goal keep going. Once you reach your goal continue to save the same amount or more if you can afford to and earmark this as your retirement fund. Budget to save as much as possible and avoid unnecessary spending.
If you are not yet saving start small. Then try to increase the amount you save each month.
The sooner you start saving the more time your money has to grow. Make saving for your retirement a priority, make a plan and stick to it.
Retirement is expensive so make sure you understand how much you will need in advance and have planned for this. You may want to maintain your standard of living when you stop working so understand how best to do this.
If you have the option, contribute to an employer-matched pensions saving scheme as for every $ you invest the company you work for will also contribute to your pension pot which will make it grow much faster.
Learn how your pension plan is invested as how you save can be just as important as what you save. Investing well can dramatically increase the size of your pension pot, whereas bad investments can diminish your pot significantly.
How much risk are you willing and able to take? The younger you are the more risk you may be able to take as you will have longer to make up for any losses. However, you should make sure that you feel comfortable and understand your level of risk.
Develop an investment portfolio that delegates your savings to stocks, bonds, commodities. By not having all assets in a single asset, you are less affected if the value of one component of your portfolio crashes. You should rebalance the portfolio regularly to ensure that it is still performing well for your needs.
Start getting into the habit of saving
Save as much as you can afford to for your retirement
Budget and plan for retirement
Contribute to an employer-matched scheme if you can
Learn how your plan is invested
Diversify your investment portfolio
Members of The Singles Sisterhood can take this a step further with our Investment and Pension Planning for Singles eCourse.
This course has the tools, workbooks and budgets to help navigate your financial future. Pop into the member's area to get you on the right road to financial security and freedom.