Could your lockdown savings boost your retirement income?
Here’s what you could do with your money…
As each week passes, we edge closer and closer to a more normal life.
Exciting, isn’t it?
Shops, bars and restaurants have reopened – and we can see friends and family again.
With more welcome changes on their way, lockdown will hopefully feel like a distant memory. Soon you’ll be back doing the things you enjoy on a day-to-day basis.
It’s safe to say lockdown wasn’t easy. But there was one ‘bitter-sweet’ perk to come from less travelling, and barely going out. A lot of us were lucky enough to ‘accidentally’ save much more money than usual.
Two thirds of the nation have spent less money overall since March 2020, Fidelity research shows. This comes down to things like not going on holiday, not eating out and not meeting friends and family. Even working from home has proved cost-effective.*
And UK adults are expected to save a collective £180 billion by this summer – according to the Office for Budget Responsibility.^
How to make your money go further
You may have noticed an unintentional boost in your own savings recently.
And that begs the question: what do you do with it?
There are many options available. But when it comes to your future goals, investing could be considered as one of the best ways to help you grow your money.
You do have to be willing to take some risk with your capital (in return for a chance of higher rewards), and intend to invest for at least five years. But through investing, you could have more chance of achieving better returns over the long run.
So what investment options are there?
First, stocks and shares ISA. This is a popular choice – mainly down to its tax-efficient perks. You can currently save up to £20,000 in an ISA each year – and any returns you make are free from tax. Stocks and shares ISAs could be one way to help your money build up even more over the long run.
And secondly, your pension. You don’t need us to tell you the importance of a pension. Whether you’re already retired, or edging closer to the big day, topping up your pension could prove really beneficial towards your retirement.
It’s important to remember that pensions offer some really great tax benefits. Every time you top up your pension, you receive tax relief of at least 20%.
Typically, you’re able to pay up to £40,000 a year into your pension and still benefit from tax relief. If you have a workplace pension you could think about topping this up – or perhaps consider setting up a new plan – to maximise these benefits.
The money you’ve built over lockdown could give your retirement plans that extra boost. Especially when you think about the tax relief you can receive. In turn, this could help towards achieving the lifestyle you want in retirement.
Here to make life easier
With the end of the pandemic in sight, this could be a really good moment to take advantage of any extra savings you may have accumulated.
When it comes to knowing what’s best for your savings, it isn’t always easy. In fact, these can be tricky decisions. That’s where speaking to one of Skipton Building Society’s expert financial advisers could really help.
You don’t even need to leave the house to plan your future with an expert. Skipton offer appointments over the phone – or via their easy-to-use video chat service, Skipton Link.
- It all starts with a free telephone consultation on whether financial advice might be right for you.
- The next step would be to arrange a review with one of their advisers – who can meet you at your local Skipton branch, or through their video appointment service, Skipton Link.
- Skipton will research and present recommendations personalised to your needs.
- There is no pressure to act on their advice – or an upfront fee to pay to hear it. You’ll only be charged if you decide to act on their recommendations and these will be made clear to you.
Skipton’s recommendations are likely to include stock market-based investments. These are not like bank and building society savings accounts as your capital is at risk and you may get back less than you invested. The value of your investments and any income from them may fall as well as rise. For Pensions and ISAs, the tax treatment of your investments depends on your individual circumstances and prevailing legislation, both may change in future.
Silversurfers is an Introducer Appointed Representative of Skipton Building Society, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority, under registration number 153706 to provide Restricted financial advice. The Financial Conduct Authority does not regulate most forms of inheritance tax planning. Should you take advice from Skipton Building Society, Silversurfers will receive a fee for the introduction. To help maintain service and quality, some calls may be recorded and monitored. Calls are free from both landlines and mobiles.
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to the accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.
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