When looking at options for funding your retirement, it’s important to understand that your pension pot will be invested – and as with all investments, your capital is at risk.
Do you have any money put away for a rainy day? Savings rates are currently lower than they have been historically, but this doesn’t mean it’s a bad idea to build a buffer. Many people can struggle to save with other pressures on their salary, so setting up a standing order for when you’ve just been paid into a savings account is a good idea for maintaining discipline.
Questions you can ask to get in control of your savings
- How much do you already have in savings?
- Are there any events coming up where you will need access to your savings?
- How much will you need?
- When do you need this amount?