Pension Funds – Have You Started One?

Have you started to think about your retirement? If you haven’t then perhaps it is time you should get a pension plan. The sooner you get paying into some kind of pension the better it will be for your future. If you do leave it to the last minute then you will not have paid in enough contributions by the time it comes to your retirement.

I know recently that not many people these days trust pensions, due to the fact that a lot of pension funds lost half their value with the stock market slump. Some people don’t bother using a pension fund, they just decide to use the capital appreciation in their home to fund their retirement, and others using savings accounts. The only issue here, is what happens if house prices drop?

Compare pension funds and find yourself a good investment vehicle to grow your money for your retirement. You need to decide at what age you want to retire because the longer you have to pay into a fund the less you will need to contribute on a monthly basis. The less time you have the more money you will have to pay in monthly installments. It’s all about saving hard, for your future. How many years does this plan need to fund your retirement one you stop working. Friends Provident pensions are a good place to start looking.

So how much should you save? They say that you should be putting between 5 and 10 percent of your salary into a pension plan. As you get older you can increase this and put more into your fund when you stop paying your mortgage.

The trickiest part of selecting a pension is where to invest the fund so that it can grow and earn you more money for your retirement. You can invest it in the FTSE 100 or other worldwide stock markets. Investments funds are tricky, and you can get help from a pension adviser, but it is still your decision at the end of the day to where you invest it.

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