When it comes to maximizing your pension, retirement planning is a “very critical phase.”
INVESTMENT OPPORTUNITIES can be intimidating because stocks can always go up and down in value. Taking on risk, on the other hand, is an additional strategy to assure a comfortable retirement and maximize the amount of money people may save in their pensions. Keeping all of one’s money in the bank may not always be the greatest long-term strategy, but everyone’s situation is different.
Pensions can be an important part of the debate when it comes to planning for the future to ensuring that a person has adequate money to live comfortably in retirement.
Heather Owen of Quilter, a financial planning specialist, spoke with us about the necessity of setting up a pension in an exclusive interview.
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“If you haven’t already, set up that pension,” she said. Set up a direct debit, regardless of your financial situation. If it’s £20 a month, go ahead and do it.
“The most essential thing is to just do something.
“Set up a direct debit and have it deducted from your pension. Then there’s the question of whether it was properly invested.
“Those who haven’t paid attention to their pension may be unaware that it’s invested or how that money is invested.
Investing can be done at any time leading up to retirement, but the risk levels that should be taken will vary.
During the interview, Ms Owen discussed the kind of risks that could be taken at various stages.
“The most essential thing to do is make sure it’s invested and taking the correct level of risk for you and your specific circumstances,” she added.
“A 25-year-old who is self-employed and putting together a pension has a considerably longer time horizon.
“Since that person has forty or fifty years till retirement, they can afford to accept a much larger amount of risk because they have the leisure to ride the market’s ups and downs, which they will witness many times.”
In essence, she was saying that the more time people have to save and create, the more investment risk they can afford to accept.
Individuals should, however, take an amount of risk that is appropriate for them. It’s also important to keep in mind that when you invest, your money is at danger.
“On the.”Brinkwire Summary News,” she continued.