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Saving for Retirement
It may seem like a long way off, but it really is never too early to start putting away money for your retirement. Generally speaking, the longer you have money invested for, the harder it will work for you - which means that you won't have to work so hard for it when you are older. If you are thinking about setting up a savings account for this purpose, click the following link to find out more about savings interest rates with Santander.
If you think that you might be able to get by without having some money set aside, then think again. An ageing population means that governments around the world are having to raise the retirement age and cut pensions in order to balance the books. If you think that all the money you are pouring into National Insurance contributions is going to come back to you when you hit retirement, you are deluding yourself. Inflation, mismanagement, and a changing demographic map are all taking a bite out of this, and by the time you retire, the state pension will buy a lot less than it does today.
Therefore, you need to start putting away some cash for your retirement. Even if it is only a small amount to start with, as long as you are putting it away regularly it will mount up and grow in
There are two types of ISA scheme, namely cash ISAs and stocks and shares ISAs. You can place up to £5,100 per year into a cash ISA, and up to £10,200 per year into a stocks and shares ISA, but the total cannot be greater than £10,200. As a general rule, savings accounts offer slow but steady capital growth in the form of interest, whereas investment funds tend to be riskier, in that they can lose you money, but they do offer higher potential returns. For more information about ISA schemes, visit the UK Government website.
