Retirement is something that you should look forward to. With modern medical advancements, it is possible to enjoy many years of work-free life, while still having your health and mental awareness.
However, to really enjoy your retirement you need to prepare today. While the government helps by encouraging fund contributions to superannuation, it is a good idea to utilize the following tips to boost the funds you have available, effectively improving your prospects when you do retire.
Of course, having a reasonable amount of funds will also help if you need to gain early access to super funds.
1. Workplace Matching
Many workplaces will offer to contribute toward your pension fund. IF they offer a matching scheme then take the offer and sink as much money as you can afford into your pot. The company will match your contributions, this can make a significant difference to the pot you’ll have available when you do retire.
It’s not just the extra money they’ll give you. You’ll also find that it encourages you to regularly save, which is essential if you want to earn a pension.
2. Pension First
Arrange for the debit to your pension fund to happen at your workplace. This means the funds will be gone before they even arrive in your bank. That reduces the temptation to spend them instead of saving them.
If this isn’t an option then make sure that your pension contribution leaves your account on the same day as your pay arrives. It offers the same result.
Don’t forget, you want to calculate a reasonable budget and maximize the amount you’re putting into your pension fund. Using a retirement savings calculator can help you understand the amount that you’ll need for retirement. As they say: ‘How you invest during retirement is as critical as how you invest in preparing for retirement.’
3. Eliminate debt
One of the biggest obstacles to saving for retirement is debt. Having debt means your funds are going to repaying it instead of saving for your future.
You need to focus on eliminating all debts. DO this by setting yourself a budget and putting all extra cash into your smallest debt. This will pay it off fastest and create a snowball effect as you focus on your next one.
Once they are all paid you’ll be able to pay those funds into a pension pot, you may be surprised at how much you can afford to put in every month.
4. Earn Extra
A great way of boosting your pension pot or simply giving you extra money in retirement is to create a side income. Ideally, this will be one that needs minimal work from you. For example, affiliate marketing can earn you a regular income. You simply have to take the time to create the website and promote it.
The extra income can go into your retirement to and help you have more money when you do decide to retire.
5. Move Up the Property Ladder
Most people sell their homes when they are ready to retire, allowing them to downsize and release funds.
This is a good idea but, for this to work, you need to move up the property ladder first. This can be challenging in the current property market and when you’re saving every cent, but, it’s worth it.