Investing effectively for retirement and enjoying your later years with a comfortable nest egg is the dream for us all. But saving for retirement means playing the long game and making wise financial decisions to make the most of your money. In this post, we take a look at the best investment options to optimise your retirement savings.
When should I start saving for retirement?
Quite simply – the sooner the better. Pension savings alone are unlikely to cover all your retirement expenses and they also offer very low returns. Making a conscious decision to prioritise retirement saving as early as possible gives your income the best possible chance to maximise returns via compound interest. It also allows savers more time to take advantage of a range of investment and savings long-term growth models.
How much should I save for retirement?
Experts generally recommend saving 10-15% of your annual income starting in your 20s or 30s, while further research suggest you should save 8x your salary by the age of 60. It’s also advisable to have a cash buffer of up to 12 months’ worth of living expenses in addition to your savings.
Research from the Pensions and Lifetime Savings Association suggests that those seeking a “comfortable” standard of living in retirement would need to save £37,300 (a single person) or £54,500 per couple. These figures from 2023 have increased significantly due to high inflation and a huge increase in cost of living, with figures expected to rise further year-on-year.
The overall figure that you wish to save will also depend on key factors such as your current age, your desired retirement age, your preferred level of risk and your retirement ambitions. You might also consider your desired retirement lifestyle (e.g. whether you wish to travel extensively or other high-cost goals), as well as how much pension income you are likely to save.
Which investment and savings vehicles are right for me?
Many people prefer to minimise risk and focus on steady growth such as a fixed income investment. Common retirement savings options include the Stocks & Shares ISA, annuities (for lifetime income), and property funds.
It’s also important to retain a level of diversification and practise effective asset allocation to ensure a healthy investment portfolio. This is one key reason why alternative investments are an increasingly more prominent part of the picture for qualified investors – they are a highly effective and potentially very profitable tool for diversification.
Professional Guidance and Retirement Savings
An independent financial adviser should be your first port of call when it comes to making a retirement savings plan. They will also be able to help you with the ongoing assessment and rebalancing of your portfolio.
If you’re interested in implementing alternative investments into your savings strategy, our team at Devete can provide guidance and introduce you to some key opportunities in the sector.
As the introducers to a number of ISA-eligible investments as well as a range of fixed income and capital growth property investment opportunities, we are well positioned to support the retirement plans of even the most ambitious high-net-worth investor.
Should you have already retired and wish to continue to amplify your investments, slow and steady income is often the best route to take. The range of property investment opportunities available allow investors to aim for a healthy mix of stability and growth via fixed-income assets.
To learn more about our unique investment opportunities and how these could fit within your retirement savings strategy, contact our team for a free consultation.
Experts suggest saving 8x your annual salary by the age of 60 in order to build your retirement fund. With the right guidance and an effective strategy, investors can be confident in meeting this goal and realising even the most ambitious of retirement dreams. Find out more:
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When should you start saving for retirement? How much should you save? What is the best strategic approach? We answer all these questions and more on our new blog post. Click the link to find out more:
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We all dream about our retirement adventures but saving enough money to meet our goals may not be so easy. With strategic retirement planning and the most effective investment opportunities, these dreams can become reality. Follow the link in our bio to find out more about how alternative investments can boost your retirement income. #alternativeinvestments #retirementsavings #retirementfund #mezzaninefinance #developmentfinance #propertyinvestment #propertybonds #structuredinvestments #propertydevelopment
