Considering retirement while you are still working can be difficult, especially if you are on low wages or have large amounts of expenditure. However, while you might be focused on the stresses of daily life, it is still important to consider retirement as early as possible. The financial experts at Portafina have created a list of eight top tips you need to be aware of for how to save for retirement while you’re working.
- Save When You Can
While you may think that it is enough only to pay into your pension regularly, your pension should see your ups and downs too. If you experience a massive windfall, make sure that your pension benefits from it; add to your pension funds when you can, not only when you have to.
- Opt-in to a Workplace Pension
Check to see how you apply for your workplace pension scheme and how you can make contributions. Everyone over 22 should be offered a workplace pension if they earn more than £10,000 and, since your employer has to contribute to them, these can make a big impact on the overall amount in your funds.
- Consider a Pension Review
Although you may be too caught up in your career to consider reviewing your pension, it is vital that you do so. Pensions can be diminished by interest rates and poor growth over time. You can speak to a financial advice service like Portafina who can review your pension for you, or you can track this yourself to understand whether your pot is growing as you expected.
- Add to Your State Pension
You should also ensure that you are eligible for a state pension, which you can find out more about on Portafina’s Facebook page. If you have worked for over 35 years and paid into National Insurance, you will be eligible for a state pension, which gives you around £168 a week in 2019. However, if you have not paid National Insurance regularly, such as due to self-employment, you may want to consider making voluntary contributions.
- Remember Old Pension Schemes
Your current job is probably not your first, and nor will it be your last. By remembering the old pension schemes that you once paid into, you can boost your retirement fund by ensuring that you can access these when you need them.
- Work Around Annual Allowance
If you don’t want to find yourself at the end of large tax bills, you should consider carrying over your annual allowance from the past three years. If you want to pay over £40,000 into your pension fund in one year, including the amount from your employer, then you can carry your allowance over as long as you have used it up.
- Receive Full Tax Relief
If you pay into a pension, you will be able to claim tax relief on your payments. This is an easy way to ensure that you can pay into your retirement while working, as this is essentially free money that you can then put towards your pension and finances.
- Seek a Financial Advisory Service
If you are struggling to combat the ins and outs of pensions while working, then you should seek the advice of a financial advisory service. At Portafina, they can help you to improve your pension’s growth and prepare for the future through their specialist advisors.
If you want to find out more about Portafina and your pension, then you should click here, or follow Portafina on their social media channels: Portafina’s Facebook page, @portafina_uk, LinkedIn, and Youtube.