Savvy retirement savers explain how to maximise state pension, ISAs and savings accounts

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Pension saving might be a task Britons are putting off, but the earlier it is addressed, the more likely someone can build up enough funds for later life. While the state pension offers an important form of support, it is increasingly being viewed as a safety net in retirement. As a result, Britons are being encouraged to take action ahead of time, review their options and see what will work best for them. 

Some individuals have shared the ways in which they were able to save for a “comfortable” retirement, taking to the website Reddit to share their top tips. 

One user said that while Britons can always rely on the state pension, this would not be enough, and instead, looking at diversification would be important.

By this, the retirement saver meant putting money into hard cash, pensions, hard assets and stocks – different methods of saving which could provide different returns.

This method is usually seen as safest, as Britons are not “putting all their eggs in one basket”.

Another person explained their plan for retirement, urging others to take action as soon as possible.

The Reddit user, Akkatha, said: “Set yourself up with the things you need, as well as the finances you can afford do so.

“Contribute to your pension, make sure you get any employer match, put some money away in investment/ISA wrappers.

“Those are basic financial health things. 

“State pension will keep track with inflation – and although it’s not much, you’ll be ale to pay council tax and a few bills with it.

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“Private pension can cover lifestyle, but it’s up to you to cover that.

“The real issue comes with needing care or if the NHS gets massively screwed over – but you can’t plan for everything.

“Do the sensible things, try to earn and save a decent amount over your lifetime and you stand a good chance of taking care of yourself.”

However, another user called Wise_Falcon20 simply advised looking at savings as the main method for retirement as early as possible.

They added: “Just start saving now whatever you can or feel it’s reasonable to put away.

“When you’re closer to retirement the uncertainty will be less and you can adjust.

“There’s only so much you can plan, life isn’t predictable.”

One final saver, though, urged Britons to take advantage of large ISA limits and Lifetime ISAs.

They said: “Make sure you don’t simply overlook them, because they create real choice.”

In this sense, diversification seems to be a key point arising once again, as not putting all of one’s savings into a pension could create an additional benefit.

For those who do want to take action on their pension saving, there are various ways in which to do so.

Although some may wish to undertake this task independently, help and advice can always be gained from services such as PensionWise and the Money Advice Service.

In addition, certain individuals may wish to seek help from a financial adviser about their retirement.

These individuals are experts in their field and may be able to provide more tailored financial guidance.

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