How to Grow Your Savings for Retirement
Typically, the average UK citizen will pay into a personal or workplace pension scheme to supplement their retirement. Whilst pensions have large tax benefits many are conscious that they might need an additional income to live the life they wish come retirement. Fortunately, there are now a variety of alternative solutions available for investing for the future.
Investing for retirement
Everyone will receive a state pension when they reach the qualifying age. However, with this amounting to £164.35 per week, many are investing their money in a variety of ways to ensure their retirement is financially comfortable.
Whilst there is a greater emphasis on contributing to a pension from an early age to build your pot overtime to give you a better income, it is never too late to start saving for the future.
Those who work for a larger company could invest in an SAYE scheme if their employer offers it. Save as You Earn Schemes allows employees to buy shares in the company they work for a fixed price after a period of saving. Most SAYE schemes are for three or five-year stints and allow monthly savings of as little as £5 to £2500. Employees who complete the length of the savings plan receive a tax-free bonus on top which varies depending on the scheme you are part of.
Similarly, regardless of how big or small a company is, it is law that all staff are enrolled on The People’s Pension. With an average interest rate of 1% saving into The People’s Pension is better than most traditional savings. Every month a small amount of an employee’s salary is syphoned into The People’s Pension, along with the contribution of the employer. For the 2018/19 tax year the minimum contribution is 5% from the employee with at least 2% from the employer.
Make your money work harder
Whilst supplementary pension pots linked to working life could make things easier upon retirement, opting for a new or alternative means of investment could prove fruitful for the future. With property a popular choice for many investors, there are some companies offering an alternative way to grow savings for those approaching retirement.
Companies such as Wellesley allow investors to support residential building and invest from the comfort of their own homes via the Wellesley Property Mini-Bond. The Property Mini-Bond, offers the stability of a fixed return of up to 6.00% per annum gross, and the flexibility to receive interest monthly to achieve a regular income or to roll it up and receive it at maturity. Funds subscribed to the Property Mini-Bond are invested alongside Wellesley’s own funds and backed against UK residential property. Ensuring that all funds are spread across all eligible loans for maximum diversification.
It is important to note, that as with most investments investor’s capital is at risk and interest payments are not guaranteed. Property investments may not always go to plan and may suffer from delays or reduction in the value of the assets. Investment through Wellesley is not covered by the Financial Services Compensation Scheme (FSCS).
Benefits of the Wellesley Property Mini-Bond:
- An exclusive £250 cashback is available for Silversurfers members. Click here to read more about the offer.
- Stability – fixed rate of interest of up to 6.00% per annum gross which will remain consistent for the full lending term.
- Interest rate flexibility – choose to receive interest monthly or at maturity.
- Secured against UK property.
- Wellesley invest their own money alongside yours.
- Terms available for one to five years.
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Independent 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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