Balancing spending with retirement planning

August 27, 2019

Making sure we are saving for retirement is one of the most important things to do. Enable’s IFAs in Bishop’s Stortford know that it is important to save but it is also important to find a balance between saving for the future and enjoying the present moment.

when to start your retirement

In the early stages of your working life, the need to save for retirement can seem so far away. But as Enable’s experienced IFAs are always saying the earlier you start the easier it will be. And as the years go by hopefully your income will be increasing too so the question becomes – how much income do you need to set aside to ensure a comfortable retirement in the future and enjoy life?

The convention is to keep working your way up the property ladder, put as much as you can into your company or private pension, and hope for the best. This is not a bad financial saving strategy but there are other options. It can be helpful to talk your plans through with experienced IFAs, like Enables team.

“There isn’t a set of rules because everyone is different, but the starting point should always be the end,” says Alice Douglass, an Independent Financial Adviser. The key to finding the right balance during your working life is to plan and think about what you might want the future to look like but also to enjoy the now. 

There are several investment strategies to help from; holding a portfolio of investments as a long term strategy. Pensions are good in that you get tax relief but they restrict access to your money. Individual Savings Accounts (ISAs) are good; particularly investment and can deliver better returns over the long term. Bonds, rental income and cash investments are also important.

Good financial planning is often the secret to guilt-free spending during your career.

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