Retirement may seem a long way off but are you saving enough now for a comfortable retirement in the future? A general rule of thumb suggests that you should aim for a retirement income of two-thirds of the amount you would expect to be earning at the end of your career.
\nIt can be hard to plan for tomorrow in this current climate of austerity when we\u2019re busy living for today, but if you\u00a0begin planning and saving now you\u2019ll have more options in the future.<\/p>\n
Sufficient income<\/strong> The decline in the state pension over recent decades and the diminution of the final salary scheme sector have left millions to fend for themselves in their retirement provision, though many will still enjoy some contributory support from their employer.<\/p>\n Simple concept <\/strong> Compounding is a simple concept. When you invest money you earn interest or income on your capital. Then next year you earn\u00a0on both your original capital and the interest from the first year, and so on. It\u2019s the snowball effect \u2013 as your capital \u2018rolls down the hill\u2019, it becomes bigger and bigger. The earlier you start investing, the more time you have for compounding to take effect.<\/p>\n Preserve your savings<\/strong> This is also a time to consider what changes you may need to make to your investments as you approach retirement.<\/p>\n People are living longer,\u00a0so you\u2019ll need to make sure your money lasts as long as you do. It\u2019s also crucial to make the right investment decisions now to\u00a0ensure that over time your money will keep pace with the threat of rising inflation.<\/p>\n Ensure your pension plans are on track. <\/strong><\/p>\n Do you know the answers to these questions?<\/strong> What retirement income should you aim for? Retirement may seem a long way off but are you saving enough now for a comfortable retirement in the future? A general rule of thumb suggests that you should aim for a retirement income of two-thirds of the amount you would expect to be earning at the end… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/1333"}],"collection":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1333"}],"version-history":[{"count":0,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/1333\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nWith the state pension and some private pensions falling short, can you rely on these alone\u00a0to provide sufficient income? The state pension age for women is set to increase to 65 by 2018 and will rise to 66 by 2020 for everyone. The government has confirmed this timetable in the face of much opposition.<\/p>\n
\nYou\u2019ll be surprised at the big difference it can make to your savings if you start saving early.\u00a0 This is because of \u2018compounding\u2019.<\/p>\n
\nThe closer you get to retirement, the greater the need to preserve your savings and ensure they will last all through your retirement.<\/p>\n
\n– Are you paying enough into your pension?
\n– What income is your pension fund likely to buy you in retirement?
\n– At what age will you be able to afford to retire?
\n– Where is your money invested?
\n– How will you draw an income at retirement?<\/p>\n","protected":false},"excerpt":{"rendered":"