Whether you are planning in advance or making a final push to boost your savings amount, there is never a bad time to start thinking about your retirement account. In fact, the earlier you start thinking about it and making a plan of action of how to tackle it, the better you will be when the time to retire comes around. So, with that in mind, here are our four top tips on how to successfully maximize your retirement savings.
Sell Your life insurance policy
If you are looking to get an immediate cash lump sum and you currently have a life insurance policy, selling is an option you will want to consider. Essentially, it involves selling your life insurance policy to a third party. This third party company will acquire it for a considerably larger amount of money than you would receive if you chose to surrender your policy instead, which thereby allows you to financially benefit from the decision. You are then able to invest this money into your savings and give them a significant boost. Ensure you take the time to research the different life settlement options available to you, rather than choosing the first one you find. We recommend consulting a guide on how to successfully and safely sell your life insurance policy, rather than going into the process blind.
Utilize Pay Raises
For those still in work, pay raises offer a great opportunity to regularly increase the amount of money you are investing into your fund. When you receive a pay raise, why not consider taking the increased amount and, instead of spending it elsewhere, aim to put it into your account every month? In doing so, you will be able to maximize your savings without technically being worse off financially, as you would only be using the extra money you acquired in the raise. Of course, this option may not be viable if your current financial position is not stable, in which case we recommend striving to contribute a percentage of the raise amount instead.
Research Employer Contributions
You will more than likely already be aware that your employer will be contributing to your pension scheme every month. What you may not be aware of, however, is that many companies vow to match your contributions, up to a set amount, each month. What’s more, you may find that the amount currently being contributed could be raised in order to meet this maximum value. Therefore, if you have the financial ability to do so, why not consider taking a larger percentage of your paycheck each month and investing it into your retirement fund? In doing so, you will essentially double the investment, as your employer will match it.
Put Off Breaking into It
As you get closer and closer to retirement age, you may become more and more open to dig in. However, making the decision to hold off breaking into your pension pot for as long as possible will maximize your chances of boosting its value, so it may be worth considering a few extra years before you take the dive. This may come naturally to some more than others, so make sure that whatever decision you make in this regard is the best one for you and your situation.