Image courtesy of Philip Brewer

Retirement is something that we should all be thinking of, whether we are young or old. Most of us will finish working at some stage and will need some money to live off. We need to consider where that money will come from.

A work pension can be a really sensible way to do this. If your employer pays in a generous chunk every time you pay in, then you could end up having a really good pension pot by the time that you retire. You may also be able to get some government pension if you have been paying into that pension scheme, which happens automatically when you are earning more than a certain amount of money.

However, even if you have these things or if you do not, then you need to start thinking about how you will manage in retirement. It is easy to think that you will not need so much money as you will no longer have a family to support and you will not need holidays and home improvements etc. But in reality many people still like holidays even when they are retired and they will have more time to take them. They may also still be helping their children out financially; they may even still have children with them. They may find that they need to make major home improvements, perhaps to aid their mobility and even perhaps move to a home for retired people which are more expensive. There is also the possible cost of a carer or care home which is more likely to be needed now that people are living longer and spending more years in retirement. Although it is great to live a long time, there are costs of doing this.

It is wise to start saving for retirement as soon as you can. It may seem a long way off, but if you want to be comfortable when you retire then this is really important. The earlier you start; the less you will have to pay in each month in order to build up a decent lump sum. If you do not where the best place is to put the money then it is wise to speak to a financial advisor. Although you will be able to do research yourself, they are experts and you will be able to pay a small fee and be able to find out everything that you need to know in a small amount of time. You will be able to decide whether a pension fund will be best for you or whether you would prefer another type of investment that could pay you an income when you need it. It is also worth getting other close family members on board in the discussion to find out what might suit them. Particularly talk to your partner, find out what pension scheme they have and whether they have any other plans for retirement income so that you can work together in making sure that you will both be well looked after financially.