With the economy now at risk of recession, it’s very difficult to predict how the future will go and what state pensions will be worth to us when we’re ready to stop working. Putting money aside for retirement provides security and, in addition, it can create opportunities to do things we’ve always dreamed of like going on a cruise, starting up a new creative project or moving to somewhere with more sun. Many people try to save by putting a little aside each month and adding it to a savings account but, as a rule, this won’t do much more than keep up with inflation. If you want your money to work for you when you’re older, you should be thinking now about how you can make it grow.
Invest in a private pension
The simplest solution is to invest in an established private pension scheme which can then supplement your state pension and any pension you get from an employer. There’s no limit to the number of pensions you can have, but you will only be able to invest a set amount per year across all of them before you start to incur tax. Some pensions limit the amount you’re allowed to contribute or require a minimum amount, so choose carefully. Check the fee structure and find out if you have the option to contribute lump sums to your fund, or just an agreed regular amount. You may also want to factor in ethical concerns. Green pensions, for instance, are increasingly popular.
Invest in ISAs
If you want your savings to grow at a higher rate of interest than the banks can offer, but you don’t want to have to do anything too hands-on, an ISA could be the answer. The amount you can save is limited, but they’re tax-efficient and offer you some control over how you want to invest. Lifetime ISAs make a practical accompaniment to a pension and short-term ones can be useful for investors who don’t feel sufficiently skilled to take chances during times of economic turbulence. Stocks and shares ISAs generally outperform cash ISAs in the long run, but they do entail some risk, whereas cash ISAs from providers insured under the Financial Services Compensation Scheme are protected up to a value of £85,000.
One of the fastest ways to make your money grow is to invest it in volatile assets like cryptocurrencies. The market moves fast and it can be useful to help you make rapid decisions without losing track of the details. This top10cryptobots site makes it easy to compare popular choices and you can set your own parameters, choosing how much you’re prepared to invest. Although there is always a danger that you could lose your money when trading, cryptocurrencies can generate very impressive profits – and most financial experts agree that one will eventually come to dominate the others.
If you’re still quite some way off from retirement, you can take advantage of that by taking on less risky forms of investment which still offer good growth potential because you can take the time to let them ripen. Professional investment managers generally advise trying to strike a balance between this and riskier, but potentially more lucrative, approaches. The risks attached to stocks also varies, and you can choose whether you prefer to be a hands-off investor, simply buying some shares and watching how they perform, or, if you have a significant amount to invest, whether you want to provide advice and support to a smaller business to help it succeed, giving you more control over what happens to your investment.
Invest in property
Widely considered to be the safest form of investment – because people will always need places to live – property can be a great option if you’re looking to invest over the long term. This could mean improving the property where you live (though not everything you might see as an improvement will actually raise its value, so do your research first) or it could mean investing in one or more new properties which you can let out until you’re ready to sell them. If you plan to increase the value of a property by restoring it, make sure that this is feasible and that you’ve properly understood what it’s likely to cost.
Making good financial decisions now could mean you have a lot more money at your disposal when you eventually stop working. It will help you live in comfort during your golden years and free you up to live life to the full.