The chances are that if you are approaching retirement, you have been saving hard all your life. But, that doesn’t mean you can’t give your savings a major boost. There are a few things you can do as your retirement approaches, and we’re going to take a close look at them today. Read on to find out more and get a boost for your retirement fund.
Increase your state pension
If you have had any gaps in your National Insurance payments, it will cause a hit on your state pension. However, you can make voluntary contributions to make up the difference. It’s not expensive. Given that many people work for forty years, however, it’s not going to cost you a lot to give your state pension a nice boost.
Increase your private contributions
First of all, if you can afford to, start putting more away in your pension pot. You can either top up one of your current schemes – if it is allowed. Or, you can open up another one. Speak to a specialist such as Retirement Line and see if they can give you some ideas. At this stage of your life, you don’t want to be bothered with any big risks. Chancing your arm with an investment tip you heard about down the club is, at best, foolish. So, play the wiser option, and put your spare money where you know it will be safe.
Throw in a lump sum
If you have money in a savings account, it might be worth putting it straight into your pension pot. If you have a few years to go until you retire, you can expect a reasonable return of anything up to and around 5%. They aren’t great numbers, for sure. But, with savings interest rates still very low, it might be more worth your while.
Delay your retirement
Many people start taking money from their pensions as soon as they hit retirement. But, at the same time, many other will continue working for a few years to come. The thing is, the longer you leave your pension untouched, the more you can draw out at a later stage. So, if you are comfortable enough and feel like working on, why not delay your pension until you need it?
Combine your pension pots
If you have lots of different pension pots, you are going to pay charges on all of them. it might be wise to stick them all into the same one, saving you any admin charges and fees. However, be careful what you move, and where you move it from. As an example, you should always leave final salary schemes well alone, as they are excellent value and you are likely to lose a lot of money if you withdraw.
Get an additional job
Finally, if you still have all the energy of a twenty year old, why not get a second job? There are plenty out there that aren’t too taxing, and they will give you a nice boost to your wages. And, you can pump all that money back into your pension.