When it comes to saving for retirement, it\u2019s never too early to start putting aside a manageable monthly sum. Even if you\u2019re in your twenties and your pension years are decades away, clear and consistent retirement planning is integral to ensuring that you have enough saved up to live a comfortable lifestyle.<\/p>\n
One of your income streams when you retire will be your State Pension and you can calculate the date you\u2019ll start receiving this here<\/a>. However, whilst the State Pension should cover outgoings such as your council tax and energy bills, it won\u2019t allow for more expensive items such as holidays abroad and any particular luxuries that you enjoy. That\u2019s why having at least one additional pension is very important, as it means that you\u2019ll have a pot of money saved up for when it\u2019s time to leave the world of work. Another excellent savings option is ISAs, as these are a great way to build up your nest egg over the years. Cash ISAs are a popular choice because they come with a tax-free allowance of \u00a320,000 a year, so you won\u2019t pay any tax on the interest you accrue within that threshold. Then there\u2019s stocks and shares ISAs, which come with an element of risk but can potentially deliver strong returns.<\/p>\n Additionally, if you\u2019re aged between 18 and 40, it\u2019s also a good idea to take out a lifetime ISA. With this you can add a maximum of \u00a34,000 a year until you turn 50, plus the government will add 25% each year for free. As an example, if you were to put \u00a31,000 into your lifetime ISA every year for twenty years, in total the government would top it up by \u00a35,000, giving you a sum of \u00a325,000 plus any interest that\u2019s built up. The main thing to consider is that you can\u2019t withdraw money from a lifetime ISA until you\u2019re 60 unless you\u2019re happy to pay a 25% penalty, the only exceptions being if it\u2019s to buy your first home or you\u2019re terminally ill with less than 12 months to live.<\/p>\n As well as investing wisely and saving up for retirement as early as possible, here are a few extra recommendations:<\/p>\n LegacyScore provides a wide range of digital tools that help you to understand your debt-to-equity ratio, choose the right kinds of financial products, plan your estate and leave a healthy legacy for your loved ones. To get started, sign up for your free LegacyScore account<\/a>\u00a0today.<\/p>\n","protected":false},"excerpt":{"rendered":" When it comes to saving for retirement, it\u2019s never too early to start putting aside a manageable monthly sum. Even if you\u2019re in your twenties and your pension years are decades away, clear and consistent retirement planning is integral to ensuring that you have enough saved up to live a comfortable lifestyle.<\/p>\n","protected":false},"author":2,"featured_media":1195,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","wds_primary_category":0,"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/legacyscore.com\/wp-json\/wp\/v2\/posts\/1194"}],"collection":[{"href":"https:\/\/legacyscore.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legacyscore.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legacyscore.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/legacyscore.com\/wp-json\/wp\/v2\/comments?post=1194"}],"version-history":[{"count":1,"href":"https:\/\/legacyscore.com\/wp-json\/wp\/v2\/posts\/1194\/revisions"}],"predecessor-version":[{"id":1196,"href":"https:\/\/legacyscore.com\/wp-json\/wp\/v2\/posts\/1194\/revisions\/1196"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legacyscore.com\/wp-json\/wp\/v2\/media\/1195"}],"wp:attachment":[{"href":"https:\/\/legacyscore.com\/wp-json\/wp\/v2\/media?parent=1194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legacyscore.com\/wp-json\/wp\/v2\/categories?post=1194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legacyscore.com\/wp-json\/wp\/v2\/tags?post=1194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nThere are different types of pensions available, including workplace pensions which will also be added to by your employer, personal pensions that come with a variety of investment opportunities, and self-invested personal pensions (SIPPs), which offer even greater control over exactly where your money is being invested.<\/p>\nSaving for retirement through ISAs<\/h4>\n
Retirement planning tips<\/h4>\n
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Start planning your retirement<\/h4>\n