Advice on retirement savings?
I am in my mid 20s and getting things sorted with regard to retirement savings, but would like to know a few more things before I embark on any other schemes: * Is it worth starting a pension now? * Will there be pensions in 40-odd years time? * If pensions are worthwhile, which private schemes are a good idea? * Which high-interest savings accounts are a good idea (I already have an ING Direct account)? Thank you for your advice.....
Public Comments
- Making money in the market is not about timing... it's about time in. You need to start ASAP because over the long term, the market goes UP. There is no guarantee they will exist in 40 years... Asset Allocation is the most important part of reducing risk and getting maximum return. High-yield savings accounts should not be a part of your retirement savings. Inflation will eat away at your returns. At your age you should be 100% invested in equities. You have tons of time to withstand the ups and downs of the market. You should always put away 10% of your income. If you can't live on the other 90%.... you need to reduce your cost of living.
- Unlikely ther will be pensions in 40 years time. (Where would the money come from?) Get a pension via a reputable insurance company. Try a few quotations. Get a job where employer pays into it. Consider saving with money not available quickly and save in it getting over 7% interest.
- If you go to: http://www.pensionsadvisoryservice.org.uk/ there's lots of helpful, free and impartial information you can download, or you can get free information from them by e-mail or telephone (contact info on website). They don't sell anything or have any other axe to grind, so should be a very good starting point for general info.
