You are young and the world is at your feet. What a time to be alive! Old age seems a million miles away in your thirties, and that is why you push it to the back of your mind. But, enjoying life as an old age pensioner is about having enough money to live out your golden years in comfort. And, the best time to do that is when you are fit and able. After all, a person’s earning potential gets less and less the older they become.
Now is the time to start saving, and here are the non-intrusive tips that will help.
Save £40 A Week
Nope, the average sum of £8 a day isn’t one which has been plucked out of thin air. According to Which? and reported on in The Guardian, a pensioner only spends about £18,000 a year on essentials. Include luxury items and that figure goes up to £26,000 mark. But, keep in mind that the current state pension for a couple is around £16,000, give or take. Therefore, a family only needs to save an extra £10,000 a year to live in relative luxury. The experts believe that £40 a week for a quite late stage is more than enough to hit this figure.
It’s not often that employees get one over on their bosses. However, the shoe is on the other foot with the match pension scheme. Quite simply, businesses have to provide their workers with a pension first and foremost. Secondly, and this is the important part, they have to match your contributions by adding the rate of tax. So, you can effectively put away £50 a week into a private pot and come out the other end with £62.50. The great thing about the scheme is that you don’t need to save big sums, which means you don’t require lots of expendable income.
Draft A Will
A will is a clever idea regardless of the savings. Just knowing your family will be safe and secure is enough to make the prospect of mortality a lot easier. But, it’s worth remembering that Ronald Fletcher thinks there are financial gains to writing a will. For one thing, a quality solicitor will (legally) use your assets to avoid inheritance tax. Not only does this help your survivors, but it helps with tax contributions now too. Writing one isn’t simple, but that is why legal experts are on hand. If you are a client, they should do everything possible to draft a perfect last will.
Saving is the first port of call, but it isn’t lucrative. The interest rate alone could be less than one percent depending on the climate. Your best option is to take a calculated gamble and invest the funds. According to Warren Buffett, Berkshire Hathaway uses solid stock options to accumulate wealth over time. This method suits your needs down to the ground because you have time to build a wealthy portfolio. Options such as Apple, Microsoft and Facebook don’t have short-term gains but pay out in the future.
What are you tricks that help you save for old age?