Those in the workforce have recently been cautioned to not be caught with their pants down when it comes time to retirement by investing in long term savings accounts.
If you’re ten years or less from retirement age, one expert has said you should be building your savings pots with such products as fixed rate bonds or ISAs. Savvy Woman editor Sarah Pennells stated that savers need to keep in mind not just how much money they plan to have but what kind of lifestyle they plan to lead after retirement, as one is completely dependent upon the other.
A good rule of thumb is to begin savings activity in earnest in the decade prior to a planned retirement, stated Ms Pennells. She stressed the important of thinking clearly about the implications such a retirement would have on your finances.
Working out exactly how much money you might need well in advance of your retirement is the best course of action, the editor added. Giving yourself a long run-up period will enable you to find ways to cut back on expenses or make up the difference in the event of a gap emerging between your cash and what you need to do with it, Ms Pennells said.
AXA Wealth recently published research findings in which it was revealed that in excess of 4 out of every 10 people between the ages of 16 and 34 would like to have the ability to access the cash they’ve been investing in their pension plans early. This contrasted with the less than 30 per cent of 45 to 54 year olds who likewise wanted the opportunity. According to the survey, the older Baby Boomers seem to have a different view on the importance of saving towards retirement in comparison with the younger generation.
Ms Pennells commented on the research findings, saying that not enough Brits see that saving cash for later in life is a priority. The 33 per cent of retired persons in the UK that are dependent on state pensions merely highlight this fact, added Ms Pennells.