How To Save Money For Your Retirement

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Photo by Harli Marten on Unsplash

 

Although it may seem like it’s years away, it’s never too soon to start saving for your retirement. Once you retire you will no longer have a regular income coming in so it’s important that you have enough saved to be able to live comfortably. For some, this is a time to enjoy all the money they’ve saved and to go on lots of different trips, renovate their house or treat their family.

 

With that in mind, here are 7 ways to start saving for your retirement now:

 

 

  • Start Early

 

 

You can never start saving for your retirement too soon, no matter how ridiculous it may seem. Putting a small amount away each month is an easy way to get a head start on your savings, especially as you won’t notice that it’s gone out of your paycheck and will soon start to build up.

 

 

  • Clear Your Debt

 

 

If you’re struggling with debt at an early age, attempting to get it cleared as soon as you can is essential. When it comes to retirement you’ll want to keep your bills as low as possible, so clearing any debt you have will help keep them as low as possible.  

 

 

  • Use A Locked Savings Account

 

 

Having a savings account that can’t be used until you reach a certain age is a great way to avoid dipping into your savings before you retire. Whilst these are usually used for those under the age of 18, you can set them up at any age.

 

 

  • Set Up A Pension At Work

 

 

One of the most effective ways to start saving for your retirement is to take full advantage of your pension scheme at work. If you’re planning to have a more luxurious retirement and staying in a home like Porthaven, having a pension is a smart idea. If you’re self-employed there are lots of ways to set up your own pension, they just won’t have the option of an employer contribution.

 

 

  • Set Goals To Work Towards

 

 

Having a savings goal each year is a great way to motivate yourself to put money away. As you will be saving money for something that is so far in future your motivation to contribute each month will be incredibly low as it is something that won’t affect you for a long time. Setting savings goals for each year is a way to ensure you have much smaller and manageable targets to reach.

 

 

  • Cut Back On Non-Essentials

 

 

Whilst you can’t cut back on the non-essentials forever, trying to cut down on having too man treats is a great way to save small amounts month by month. If you stop having two takeaways a month you could save an additional £50 a month, which is an extra £600 a year! If you think about how many years you have left to save before you retire, you could be saving thousands!

 

Have you already started saving money for retirement? Let me know your tips and tricks in the comment section below.

Posted by Charlotte Jessop

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