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    • Cristy Jones
    • By Cristy Jones 11th Jul 17, 3:37 PM
    • 27Posts
    • 13Thanks
    Cristy Jones
    how do you make sure that you maximize your savings and retire comfortably?
    • #1
    • 11th Jul 17, 3:37 PM
    how do you make sure that you maximize your savings and retire comfortably? 11th Jul 17 at 3:37 PM
    Creating a comfortable retirement is, in many cases, the single biggest financial challenge that anyone can face. But how do you make sure that you maximize your savings and retire comfortably? What are the tips, tricks and advice you could give to achieving the dream of a secure, comfortable retirement?
Page 1
    • justme111
    • By justme111 11th Jul 17, 3:44 PM
    • 2,703 Posts
    • 2,602 Thanks
    • #2
    • 11th Jul 17, 3:44 PM
    • #2
    • 11th Jul 17, 3:44 PM
    Read many existing threads on this board
    • JoeCrystal
    • By JoeCrystal 11th Jul 17, 3:53 PM
    • 1,233 Posts
    • 695 Thanks
    • #3
    • 11th Jul 17, 3:53 PM
    • #3
    • 11th Jul 17, 3:53 PM
    I agreed. One of the best decision I ever made was to stumble into this pension forum and gives me enough confidence to find an IFA and set up a private pension back then when my employer don't contribute. Still quite an education!
    • bostonerimus
    • By bostonerimus 11th Jul 17, 5:59 PM
    • 512 Posts
    • 251 Thanks
    • #4
    • 11th Jul 17, 5:59 PM
    • #4
    • 11th Jul 17, 5:59 PM
    The most important tool is a budget.

    User a spreadsheet to track every penny you spend and look for areas where you can save.
    Misanthrope in search of similar for mutual loathing
    • Thrugelmir
    • By Thrugelmir 11th Jul 17, 6:02 PM
    • 54,385 Posts
    • 47,199 Thanks
    • #5
    • 11th Jul 17, 6:02 PM
    • #5
    • 11th Jul 17, 6:02 PM
    Creating a comfortable retirement is, in many cases, the single biggest financial challenge that anyone can face.
    Originally posted by Cristy Jones
    Define comfortable.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • PasturesNew
    • By PasturesNew 11th Jul 17, 6:04 PM
    • 59,228 Posts
    • 345,782 Thanks
    • #6
    • 11th Jul 17, 6:04 PM
    • #6
    • 11th Jul 17, 6:04 PM
    Best bet is to marry well .... that's still my plan.
    • Stubod
    • By Stubod 11th Jul 17, 7:28 PM
    • 380 Posts
    • 207 Thanks
    • #7
    • 11th Jul 17, 7:28 PM
    • #7
    • 11th Jul 17, 7:28 PM
    *2 for keeping a spreadsheet / budget. We "went early" last year after months of spreadsheet work.

    Know what your costs are, then plan your future spending, (monthly). Keep a record of income and expenditure and monitor this against your budget.

    Track where all you money is and ensure you are getting the best rates.

    For planning purposes assume "worst case" interest rates and inflation
    Last edited by Stubod; 11-07-2017 at 7:32 PM.
    • worried jim
    • By worried jim 11th Jul 17, 7:34 PM
    • 8,292 Posts
    • 12,567 Thanks
    worried jim
    • #8
    • 11th Jul 17, 7:34 PM
    • #8
    • 11th Jul 17, 7:34 PM
    Take advantage of employee schemes. If I pay 3% they pay 8%, but if I pay 5% they then pay 13%- more free money!
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • LHW99
    • By LHW99 11th Jul 17, 9:17 PM
    • 809 Posts
    • 627 Thanks
    • #9
    • 11th Jul 17, 9:17 PM
    • #9
    • 11th Jul 17, 9:17 PM
    Get into the habit of saving a part of every pay rise, before you start spending it - otherwise it is too easy to increase your lifestyle to match the funds available and never save at all.
    • chiefie
    • By chiefie 11th Jul 17, 9:41 PM
    • 286 Posts
    • 296 Thanks
    Whatever you save now you can spend later in life when you finish work. Start with that thought and work forwards as to what vehicle you are saving in. Sorry for being simplistic about it.
    • A_T
    • By A_T 11th Jul 17, 9:51 PM
    • 108 Posts
    • 46 Thanks
    Don't spend your money on things you don't need. Although the economy need you to so consider your patriotic duty!
    • Bravepants
    • By Bravepants 11th Jul 17, 9:57 PM
    • 215 Posts
    • 237 Thanks
    Start early and invest in a global index tracker fund, include a greater percentage of bond funds as you get older...up to 30 or 40 %...some say 40% is too high a bond allocation to maintain safe drawdown rates.

    It's a good idea if you are going to retire later in life (past 50) to adopt a phased approach. Some pensions can only be taken from 60, or 67...AVC or SIPPS can give you tax free advantage particularly if you are a higher rate tax payer, and you can take them from 55.

    Live well below your means. Don't inflate your lifestyle when you get a pay rise. Who needs a brand new Merc, or a massive house with an associated massive mortgage? Leave that wasteful crap for the show offs and the Jones family next door.

    Spend time developing your skills and self improvement to earn more and gain happiness from learning and experience, not stuff that gathers dust or becomes obsolete next year.

    Get hobbies, preferably ones that don't cost money, to distract yourself from the need to accumulate more stuff.

    Simplify and declutter your house to give you peace of mind. The less stuff you own, the less you need to spend on insuring and maintaining it.

    Live close to where you work so you can walk, save money on fuel and get free exercise by walking. Make your own lunches instead of buying lunch every day.

    Become a Money Mustache...
    Last edited by Bravepants; 11-07-2017 at 10:00 PM.
    • AnotherJoe
    • By AnotherJoe 12th Jul 17, 8:39 AM
    • 6,900 Posts
    • 7,339 Thanks
    Also read "the escape artist" and look out for other blogs on "FIRE" (Financial Independence Retire Early) it's a recognised acronym.
    • Triumph13
    • By Triumph13 12th Jul 17, 10:08 AM
    • 1,005 Posts
    • 1,188 Thanks
    The two simplest routes are either:
    A) Progress your career whilst avoiding 'lifestyle inflation'. After a certain, quite low, level spending more money doesn't make people happier - most people who went to university rate their student days as some of the happiest of their lives despite living on a tiny budget. If you can avoid getting sucked into 'needing' what all the other consumerist suckers are buying and invest the money instead then FI and a comfortable retirement will follow.
    B) Get a job with a DB pension scheme
    Largely confined to the public sector now, but if you get one all your retirement worries largely disappear so well worth spending part of your career this way. A couple who each earned £30k pa who spent just 10 years in the LGPS, for example, would have nearly £28k pa post tax between them from state pension age between the DB and SP - which is around the median from 'The Number' thread - and so DC funds from the rest of their career could be used to fund early retirement.
    • Linton
    • By Linton 12th Jul 17, 10:36 AM
    • 7,976 Posts
    • 7,787 Thanks
    Planning. Know how much money you need when to meet your retirement objectives and have a realistic plan to provide it.

    And then keep to the plan.
    • Cristy Jones
    • By Cristy Jones 25th Jul 17, 8:01 AM
    • 27 Posts
    • 13 Thanks
    Cristy Jones
    Thanks for all the replies. Although some of the comments I have read made me laugh a bit. Anyway, I raised the concern because I recently visited a friend who mentioned about a retirement planning package offered to her by her local credit union.

    Maybe I should revise the inquiry i have mentioned. Considering all the retirement plans available (credit unions, banks, private financial firms). What should be the number one consideration and how does one ensure legitimacy?
    • tacpot12
    • By tacpot12 25th Jul 17, 8:37 AM
    • 574 Posts
    • 503 Thanks
    Number one priority should be safety. You don't want to invest with an unregulated firm and have them disappear with all your retirement savings.

    Next should be a good range of investments. To save well you need the right choice of asset classes.

    Next should be low charges. The effect of a 0.5% difference in charges is substantial over the term of pensions saving, so carefully evaluate the charges.
  • jamesd
    Worth learning about VCTs. They are a useful way of reducing income tax by deferring some income for five years. Can let you cut your income tax net cost far more than pensions alone. Only relevant for UK tax residents.
    • Economic
    • By Economic 25th Jul 17, 12:58 PM
    • 78 Posts
    • 56 Thanks
    Define comfortable.
    Originally posted by Thrugelmir
    Not having to use a spreadsheet to track every penny of spending!
    • atush
    • By atush 25th Jul 17, 3:35 PM
    • 16,100 Posts
    • 9,807 Thanks
    Never use a bank for financial planning, esp re retirement.
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