Last Updated on April 14, 2021 by Melissa S.
There are so many different concerns we have when it comes to money. When we are struggling with our finances, it’s difficult to save money month to month. And then as we get older, we realise that retirement comes closer and closer with every passing year. And if you are worried it’s too late to start saving for your retirement, what can you do to make sure that you get the ball rolling, while also ensuring you get what do you need for a good quality retirement?
Addressing What You Want Out of Retirement
This is the first thing you need to consider. You may believe that you need X amount of money, but the reality is in finding out what you want personally. You can find an abundance of retirement planning advice online to get you started, but they will always require you have an idea of what you want to achieve. When you finally decide what you want out of your retirement, you can then put a price tag on it.
Looking at Your Pension Pots
We’re talking plural. If you’ve worked in quite a few jobs, it’s very likely you’ve been automatically enrolled into a company pension. Auto-enrolment was introduced in 2012, which means that if you’ve worked in different jobs since then, you may have pensions strewn all across these companies. You can track down any lost pensions by contacting previous employers, or you can call the Pension Tracing Service. The best thing to do is to get as much information as possible before you contact them.
Understand What You Need for a Good Retirement
It is always a good idea to sit down with a specialist to understand what you need for a good quality retirement. You need to understand what you want, but it’s also about making sure what can keep you afloat. When you address what your monthly expenditure is on essentials, in comparison to your desirables, you can start to put money aside accordingly. For example, you can use one of the many savings methods out there, like the 50/30/20 method. This gives you the opportunity to put some money aside while still keeping your eye on the bigger picture and not sacrificing your current lifestyle too much.
It Is Never Too Late to Start Saving
While you may think that time is ticking on, and you are worried that you are not able to secure your future, there is a very rough rule of thumb on how much you need to save depending on your age. You should take your age when you start saving for your pension and halve it to give you a percentage of how much you need to save. For example, if you are 40, you will need to save 20% of your salary to put into your pension. In addition, you may want to consider opening up a savings account with a high interest rate, such as an ISA. In total, you might think that it’s too late to start saving to get the amount that you want. But the fact is that when you already made big purchases in your life, such as your home, it is vital to start saving for retirement. It is never too late.