- Joining the pension
Get the most from your pension
- Use the tools
- Boost your pension
- Approaching retirement
- Contribution options
- Your investment options
- Things to know about investing
- What are the charges?
- Check or change your investments
- Common questions
Ways to save for retirement
There's lots of confusion about the best way to fund your retirement. Although it may seem like a long way off, a good way to make sure you’re in control of your finances in retirement is to do some clever pension planning right now.
Investing in property
Some people choose to invest in a buy-to-let property, with the aim to live off the rental income. A buy-to-let property in a good location could provide a steady income and is an asset that you can sell.
Another option is to downsize to a smaller property and release some capital. If you are mortgage free, and you have owned your main home for a long time, you could release a significant amount of capital by doing this.
But, buying and selling property is expensive - there are legal fees, stamp duty and possibly capital gains tax to pay. Plus, you need a deposit of at least 10% of the property's value. And, if the property market isn't performing well, property may take longer to sell than you expect - or you may not get as much for your property as you hoped.
Banking on an inheritance
Some people expect that they might receive an inheritance from parents or relatives, which could help fund their own retirement. But it's important to remember you can’t rely on this. As we’re all living longer, it means we need more money in retirement, so many people may not have much left to leave to their family.
Relying on the State
We're all living longer - and there just aren't enough working people paying taxes to support the growing numbers of people in retirement. This means it's getting harder for the Government to fund the state pension and additional benefits.
An effective way to ensure you're in control and can afford the lifestyle you want in retirement is to invest in a pension.
A company pension is a great way to do this, as your employer also contributes, and you get tax benefits from HMRC. You can control where your money is invested, the level of risk you take and how much you pay in, to ensure that you’re on track for the retirement you want.