Top 5 Retirement Saving Mistakes 2013

It’s always best to plan your finances for the future; here are some tips on what to avoid when saving for your retirement

14:58 18 January 2013

We should all put a little away for a rainy day. And planning for the future also means considering your retirement. It doesn’t matter what age you are; where possible we should all save money for when we may no longer be able to make money working.

Be it that you are looking into pensions, or investing your money in other ways; it’s always good to have a plan in place when it comes to your finances.

We never know if we’ll need to take early retirement, as our health could fail us and we may not be able to work, so planning for your retirement is always wise.

With regards to investment plans for the future, here are our Top 5 Retirement Saving Mistakes 2013 to help you;

1.    Not starting a pension: This may be a bad idea. The basic state pension will give a weekly income for retirement, but if you have a set budget in mind for your later years, it may be good to start a private pension to help you build your money.

2.    Not reviewing your savings: We should all review pension savings if we have a pension in place, but many people don’t do this. If your investments are not doing too well, you will need to make changes as this could affect the amount you have for your retirement.

3.    Focusing on property: If you invest all of your money into property you may be taking a risk. It would be best to spread your money over different retirement funds.

4.    Not saving tax via pensions: Sometimes you can get money back from the tax office. This relates to tax relief on pensions. Pension tax relief relates to when the government contribute a percentage of money to a pension. If you get money back, why not add it to your savings funds?

5.    Using a poor workplace pension: Many workplaces offer pensions, and many people make use of good retirement benefits on offer, but you should consider if what it being offered to you is a good deal. After all, it’s your future!