Did you know that only 39% of American’s will have started saving for a pension in their 20s? It is important to start saving for retirement as soon as you can to ensure you have enough money for your retirement. If you are having difficulties financially then head over to this blog post on how to financially bounce back.
Long Term Investments
When saving for a pension you are saving for the long term. Consider the options available in stocks and shares. This may mean taking a higher risk with your investments but historically stocks and shares have performed better than other low-risk investments.
Consider investing in property. Building your portfolio of rental properties is a great way of investing your pension cash. A property portfolio again is a long term investment that can go up and you can sell at any time to reinvest your cash.
This simply means don’t be putting your eggs all in one basket. Ensure you invest in different funds, in the different property portfolios or, by spreading your money about. This is particularly useful if you wish to invest in high risk, you can also invest in low risk to spread that risk around.
Investment Fees and Charges
With all investments, there is a charge. Ensure you check out the charges and only choose an investment that has a charge or fee which is acceptable to you and isn’t excessive.
Ensure you review your investments on a yearly basis. This will allow you to check how the investment is performing and whether you need to move some of your funds. If you are closer to your retirement you may wish to review your investments every six months.
Access to Your Funds/Pension
A lot of providers now allow you to access your investments online. This is a great tool if you are interested in moving your funds on a regular basis. It’s also quick and easy. Check out which pension providers offer this service.
Choose a pension provider that has a track record of investments and is able to provide you with information on their performance. They should also have a complaints procedure and insurance which will provide you with the level of protection for your investments.
You will want a pension provider who can offer you flexibility with investments and is able to help you at every step. This includes helping you make the right investment choice and allow you to make a regular contribution or if you wish to make a lump sum too. Being flexible will give you the best options when it comes to your pension and investments.
The above points are just some of the things to consider when you are starting a pension. Starting a pension early is the best possible outcome for you. You can do this by starting to save a small amount by checking your income and outgoings to see how much you can save. It will stand you in good stead when you retire by starting a pension sooner rather than later.