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Sep 1

Unique Alternative Options to Save Your Retirement Money

Posted by at 17:36 | Default | Comments(0) | Reads(1137)

The majority of people look forward to retirement and the ideal that they will no longer need to work every day. The fund that they have been paying into for years will mature and provide them with a reasonable amount of income very month. Unfortunately the traditional approach of saving is not the best solution or even a viable solution for many people. Even those who are able to save monthly are at risk of losing a large proportion of their savings if their pension company invests it badly.  

The truth is that the majorities of people do not have enough funds available to secure a good retirement income and may be left working for many years after retirement age. There are, however, alternatives to the traditional savings route:

Debt freedom
Much of the calculations used to work out an acceptable pension income level are based upon current income and standard of living. However, your current income will be largely spent on paying debt. Instead of saving for retirement you should focus on paying down your debt, no debt will equate to a far lower figure being required to provide a good pension pot.

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Portfolio
Instead of focusing on building an investment portfolio you need to focus on how you can earn a small amount of extra money each year.  It is entirely possible that you can generate enough funds to live comfortably on, without debt, by just working part time. This will allow you the time to look at alternative ways of making money for your retirement.

Social contributions
All through your working life you are expected to pay contributions into the social security scheme. You then start to draw these at retirement age. There are actually many other options that can be employed to maximize the benefit you receive from your contributions.  It is advisable to speak to your advisor to ensure you are getting the most for your money.

Stretch your money
It is easy to calculate what fund you require to provide a reasonable level of income in your retirement. It is also easy to continue working past retirement age in order to build this fund. However, many people do not consider the possibility of relocating to a cheaper part of the country or even world. This will make your current nest egg go much further and will allow you to retire sooner.

Medical bills
Surgery, even with insurance can be expensive and often unavoidable. It is cheaper to take a medical vacation and have the surgery completed in a different country. This will allow you to keep your money in your savings pot. You may also benefit from access to pioneering new treatments as you visit a medical facility which specializes in your treatment. Just be sure to thoroughly check the facility and the doctors before committing to an operation.

Travel
One of the many joys and often the highlight of a busy working life is the annual holiday.  However, for those who enjoy travelling it can be an expensive hobby. Instead of booking five star luxury hotels you should be looking at different ways to holiday. It is possible to use ‘travel hacking’ to build up a large volume of frequent flyer miles or hotel loyalty points.  These can then be used to save yourself money whilst still enjoying the vacation you deserve.

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Invest in wine
Investing in wine can be an excellent way of saving retirement money. However, if you’re new to the market and you haven’t done it before, you should check with a professional and ask for assistance first.  Consider a wine investment fund; purchase good quality wine in advance and let them mature. In 5 to 10 years they’ll become valuable enough to get sold.

There are many alternative ways of providing for you and your loved one during retirement.  The most important starting point is to get rid of your debt.  From this point on you will be able to locate a wide variety of methods which will assist you to live for less and need less funds when you retire.  The more you use your imagination the more successful you will be at this!


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