5 ways to start paying for your retirement

You’re probably balancing a mortgage, a career, and family life. Juggling all that is enough.

Paying for your retirement might feel like something you can put off until ‘later’.

Here’s the truth: your retirement is a second mortgage. Instead of owing the bank, you owe your future self.

The earlier you start ‘repaying it’, the less it will cost you in the long run.

Here are 5 ways to start paying for your retirement today.

| 1. Always make your payment

Think of your retirement savings like your home mortgage. If you skip payments, you’ll have to pay much more later.

Even if you’re focusing on overpaying your mortgage or covering school fees, put something into your pension and/or ISA every month.

I don’t care if it’s £50/month, start your investing habit and start building. If you’re 30 years from retirement, £50 today is comfortably £200 to your future self. Use the power of compounding.

| 2. Turn pay rises into future income

When you get a salary increase or bonus, it’s tempting to upgrade the car, book a bigger holiday, or move house.

Instead, allocate a portion of the extra income to pay for your retirement.

You were already living without that money, let it quietly build your future lifestyle.

| 3. Time is your friend

When you get a salary increase or bonus, it’s tempting to upgrade the car, book a bigger holiday, or move house.

Instead, allocate a portion of the extra income to pay for your retirement.

You were already living without that money, let it quietly build your future lifestyle.

| 4. Take advantage of pension tax relief

Pension contributions are the most tax-efficient way of paying for your retirement.

If you’re a higher-rate taxpayer, every £1,000 will cost you max £600 from your pocket.

That’s getting a 40% boost on your investment before it even hits the market.

Short term sacrifices = long term gains.

| 5. Redirect your mortgage payment when it ends

When the mortgage on your home loan is cleared, don’t let that money vanish into day-to-day spending.

Send the same monthly payment to your pension or retirement investment account instead.

No sacrifice to how you were living before and a much needed boost to your pension.

You’ll be amazed how quickly your retirement pot grows when you’re putting in an extra £2,000+ a month.

| The bottom line

Paying for your retirement should be treated with the same urgency and importance as repaying your home’s mortgage.

Start now, keep it consistent, and your future self will thank you for creating a life where you can choose how you spend your time and not worry about how you’re affording it.

If you’re unsure how to balance retirement saving and overpaying your mortgage, book a call now to find your balance of paying for your two mortgages.