Investing for your retirement is a risk, but then everything is a life is a risk! Saving for retirement through investing is still the best way to ensure you have the funds you need to retire when you want to retire. It is possible to make a mistake or two today that will affect your retirement pot, it is also possible that the stock market will crash and wipe out a huge portion of your investment portfolio. However, it doesn’t have to be a scary experience; the following tips will help ensure you have a good retirement fund and can enjoy your retirement years:


You have probably heard it said many times, but the younger you start putting funds aside the better your pot will be. This is partly because you will save more by virtue of making more contributions; but it is mainly to do with the fact that your money will grow much quicker thanks to the effects of compound interest. This is when the interest on your savings goes on to earn its own interest. No matter what age you start saving, even if it is only a little; because even a little amount will grow.

Employer matching

The majority of businesses offer some form of retirement savings matching. In effect they will put the same amount of finds into your retirement account as you do every month; up to an agreed limit. Check the terms of your employment and focus on making the maximum possible contribution to get all the funds you can from your employer. It is free money!

Increase contributions

To improve your savings pot you can increase the amount you pay in! One excellent way of doing this is to increase your contributions by one percent at the beginning of each year.  Pencil it into your calendar to ensue you do not forget. You can also increase your contributions by any pay increase you receive. If you are already able to live on your existing funds you will not need the additional funds and will not miss them!

Contributions should be deducted from your wages as soon as they are paid into your account.  This should be done automatically as it will ensure you are not tempted to spend your savings funds.

Health savings

Starting to save for retirement when you are young means that you will probably not need the full healthcare package from your employer. Instead you should get a high-deductible health plan. This will make you eligible for a health savings account. Your employer may contribute to this plan and you should put what you can in. It can be used to help with healthcare expenses at any time and, once you retire, it is possible to use the remaining funds for anything you like!

Long term goals

Set yourself a goal for your savings plan, whether this is to retire early or to buy a holiday home. Then find a way to remind yourself of this goal regularly; it will ensure you stay inspired and motivated enough to keep putting in your contributions. As your fund grows it will become easier to stick to your plan.

Aggressive plan

The stock market can be a fickle investment tool; for example in 2008 the market fell by forty percent; the following year it rose by thirty percent. On average the market outperforms any other investment vessel by five percent every year. By taking a sensible yet aggressive approach you can benefit from the gradual upward path of the market and boost your retirement account. The younger you are the more aggressive it is possible to be; you have more time to recover any losses.

Investing for retirement does not need to be scary, and providing that you start early you have the highest chances of living comfortably by the time you reach 65. However, things are not that simple and you need a financial planner or professional advisor to help you out. They will use the latest finance software tools to calculate your interest rate, and prevent you from making bad investments. Stay on the safe side, put enough money aside and you won’t have lifestyle issues of any sort in your senior years.


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