Seven rules to stick to when investing for retirement
While every saver is different, there are a few golden rules that everyone should stick to when it comes to investing for retirement.
Here we run through some of the prime principles…
Seven rules: Below, we reveal the key principles everyone should stick to when it comes to investing for retirement
DON’T WITHDRAW MORE THAN YOU NEED
With your retirement savings easily accessible in drawdown, it can be tempting to take out more than you need, but this is a mistake, according to experts.
Not only is your cash subject to tax once you take it out of a pension pot, but, if it’s sitting in the bank rather than a fund, you are also missing out on the opportunity for it to grow further.
Having the money to hand might feel like the safe option, but it could leave you short later in retirement. With most drawdown pensions it’s easy to get at the money when you want, anyway.
Graeme Clark, head of private clients at wealth managers Courtiers, says: ‘While you might want to hold a small amount of your savings in cash as a buffer or in case of an emergency, you shouldn’t take more than you need to from your pension pot.’
HOW TO MANAGE YOUR INVESTMENTS
When you invest in a fund, you are…