3 Ways To Save For Your Retirement

Younger people are becoming more concerned with their financial future. World events like the Covid-19 pandemic have made many realise that nothing is a guarantee, and many recognise the need to take the necessary steps in order to protect their well-being. In particular, younger generations, such as Generation Z, are starting to focus on saving for retirement despite many still only entering the workforce. However, younger generations do not have all the information they need to know exactly how much money to save to retire. According to a recent study, only 66% of generation Z and 74% of millennials know this.

What Are The Best Ways To Save For Retirement?

Understand Your Eligibility For Workplace Pension

Younger generations may not know they are eligible for a workplace pension if they are of a certain age and earn a specific figure. According to this article exploring the best UK pension providers, this workplace pension can be put aside in a pot. Later, after someone retires, this pension is paid as a set percentage of their salary. In order to be eligible for this pension, individuals have to be over the age of 21 and earn £10,000 a year. All companies in the United Kingdom must contribute to someone’s workplace pension if they meet these criteria. There are many different types of pensions, but the workplace pension is one that can benefit younger generations.

Build An Investment Portfolio

In the same way, many younger generations are starting to invest more in the stock market and other asset classes. An investment portfolio can be a combination of asset classes, from stocks to bonds. While investing is always risky, there is upside potential in putting money into an investment portfolio. To reduce this risk, prospective investors need to learn about what makes the market volatile and discover what trading style they would like to engage in. For example, there are day traders who enter and exit the market on the same day, but there are also swing traders. These traders are active for a period of days to weeks.

Open A Fixed Rate Bonds Savings Account

However, if you do want to go down the savings account route to save for retirement, fixed rate bonds are worth considering. Fixed rate bonds are a type of savings account that offer fixed interest rates over a specific period. Typically, a fixed rate term can last between six months and five years. This savings account lets you earn interest during your term period that you can withdraw once the period ends. Using fixed rate bonds will allow you to achieve your savings goals.

Now more than ever, younger generations understand the importance of saving for the future, and part of this future involves retirement. While the thought of saving for retirement may seem daunting to some, there are many ways to achieve this goal, such as by building an investment portfolio, seeing if you are eligible for a workplace pension, and opening a fixed rate bonds saving account.