Saving Up For Retirement

You don’t have to be old to start thinking about saving up for retirement. Whether you have just begun your first job, or you are feeling that retirement age is looming closer, you can still effectively save up money for when you retire.  Although it could be a lifetime away until you are old enough to retire, putting a little bit of money into a savings account each month or paying into a pension as early as possible will pay off when retirement age finally comes around.
Pay Into A Pension
Whether you are planning on spending your retirement living abroad, thinking about living in lifestyle villages or retirement villages, or simply haven’t given the idea much thought at all, paying into a pension, even from a young age, can ensure that you will be able to live comfortably and still have an income when you retire. Most workplaces will have a workplace pension scheme in place that you can pay as little or as much into as you’d like straight out of your wage, so it is worth enquiring about this with your employer. A lot of workplaces will also pay money into your pension for you, making it a great alternative to a savings account or private pension plan as the end result will be more money for you when you retire.
Open A Designated Savings Account
If your workplace doesn’t provide a pension scheme or the idea doesn’t appeal to you, opening a savings account specifically for putting away money for your retirement is a good idea. Although when you retire you will most likely be provided with a government issued pension that will pay your rent and bills, saving up some money will ensure that you have enough cash to spend on things for yourself and luxuries such as holidays rather than only ever having money to pay the  rent to the retirement villages or lifestyle villages in NZ that you choose to live in when you retire.
However, take into consideration that the more you save, the more tax you will need to pay on the money you have accumulated. Ask at your bank about tax free savings accounts, and although these will almost always have a savings limit, they are an effective way of saving up for your retirement whilst paying the minimum amount of tax.
Stocks and Shares
If you’re familiar with the stocks and shares market, investing in some shares might be a good way to save up money for your retirement. Ensure that you do your research before you invest, as stocks and shares can be risky and could result in your losing money. Some stocks and shares schemes are protected so that even if you do not make any money you will get the amount that you invested back. Depending on your place of work, you may be able to buy shares in the company that you work for by means of a monthly payment.