Retirement planning: top 3 pension tips

Planning for your retirement is the key to enjoying comfortable golden years.

10:22 21 August 2013

Effectively planning for your retirement is your ticket to comfortable golden years. Below are the top tips that you should keep in mind when doing so:

1.    First thing to do is to decide when you’ll retire. Then, figure out how much you will need to maintain or even improve your current quality of life. By doing so, you’ll easily know how much money you need to raise and how much time you need to raise it.

2.    Next, you could decide on how to invest money that you saved. You could perhaps invest in the stock market, real estate properties, mutual funds, or you open an ISA. Just make sure that you understand each option and that you choose based on your risk tolerance.

3.    Diversify your portfolio. The number one rule in investing is to diversify. This simply means NOT putting all your eggs in one basket. Spread out your investment in the stock market, real estate, bonds, etc. to easily manage the risk.