Investment In Pension Funds

Are You Making A Monthly Investment In Pension Funds?

Investment in pension funds is not growing as quickly as the government would like. Over the last 10-15 years, various pensions scandals and mis-sellings have decreased consumer confidence in the pension as the best form of retirement savings. Yet it remains one of the most tax-efficient ways to save, and pensions advisers are increasingly worried that not enough people are taking the issue of retirement income seriously.

Property, both in the UK and abroad has become a popular way to invest money for the future. A decade of exceptional growth in the housing market has encouraged people to undertake buy-to-let mortgages, or to rely on their own property as a vehicle for their retirement fund. Pensions advisers and fund managers alike are concerned that, should the housing market fall, or the buy-to-let market become overcrowded, this anticipated income will be lost, and there will have been no concurrent investment in pension funds to provide a safety net.

If you work for a company that offers a good pension plan, then you should take advantage of it. Workers in the public sector, such as teachers and nurses, have access to some of the best pensions arrangements of all, and should make sure that they are contributing as much as they are allowed in order to take full benefit of it. Those people who work in the private sector may have pension arrangements that are more hit-and-miss, particularly those who move jobs frequently. If you are using your pension as your only means of saving for retirement, then your fund will need to be substantial in order to provide you will a reasonable income at retirement. If you are among the many people who have neglected an investment in pension funds, you should talk to an independent pensions adviser now, to make sure that you begin to save the right amount for a comfortable retirement. As a rough guide, half your age; that should give you an idea of the percentage of your salary that you should be saving each month. For example, a 40-year old should be saving 20% of their monthly salary into a pension fund.

It's certain that you need to have a coherent plan for your retirement. If you are considering starting an investment in pension funds, or you have existing pension plans that you think could be working better for you, or you just want to know how best to plan for the future, arrange to speak to one of our panel of expert, independent pensions advisers. They can help steer you through the complicated pensions field and bring you out on the other side with long-term investments that are right for you.