Tips for making the most of your pension

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No matter how old you are, you should be thinking about how you are going to cope financially in the future, and how you are going to make sure that you have enough money for your needs. With this in mind, thinking carefully about your pension is key, IBC pension advisors Glasgow have put together a list of tips that will help you.

Start as soon as possible

When you retire, you will need a certain amount of money to live on. The younger you are when you start saving for this, the less you will need to take out of your pay packet each month to put to one side. Or, if you want to invest the same amount as you would have done if you were older, you have a better chance of saving more, therefore making your retirement more comfortable.

Set up automatic payments for your savings

Depending on the type of pension that you have chosen, you may find that you need to make manual payments rather than having a direct debit. If you can, try setting up a standing order to pay in a certain amount to your pension account each month. This means that you will always make the payment, rather than missing it sometimes if there is something else that you feel you need to spend money on.

Cut back on spending where you can

Although you need to enjoy your life, there will be lots of things that you waste money on that you don’t really need. There are lots of people who feel that they can’t afford to contribute to a pension because they don’t have enough money to spare, but more often than not this isn’t the case at all. By thinking carefully about spending, and trying to cut back, you will find that you have more to put to one side.

Set yourself a goal

If you don’t know what you’re aiming to be able to save, there is little motivation when it comes to making or increasing your payments. Therefore, you should always set a monthly goal that you would like to meet when it comes to saving money for your pension, and this should motivate you in the best possible way to improve your payments.

Feel free to make more payments

If you find that you have some spare money each month, it can be a good idea to put at least part of that into your pension pot. When most of us have money to spare, we waste it on things that we don’t really need, but changing your attitude to this is likely to make your pension pot a lot healthier in the long term.

Generally, nothing is more important than looking after yourself when you enter old age. It can be frustrating to get to retirement age only to find that you need to continue working, so if you make sure that you make plans well in advance, you can avoid this from being the case at all.

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