Saving for retirement

It’s never too early – or too late – to start saving for your future and, if you’re reading this, the chances are you’ve probably already thought about why you need to put something aside.

You might be saving for a particular project or special event or you may want to put money away for your children or your retirement. You may just be making sure you have enough money for whatever the future throws up.

Once you’ve decided why you’re saving you need to focus on the best way to achieve your savings goals. One way to think about saving is in terms of short-term savings and long-term savings.

Short term

With short-term savings, it is good practice to put aside 3 to 6 months of your salary so you have a financial ‘safety net’ which is easily accessible.

A short-term savings option is a Cash ISA (Individual Savings Account) in which interest is earned at the rate when you originally open the account and is tax-free. With a Cash ISA, there is little risk to your money, however, there is also little potential for it to grow.