How and why to save for retirement

How and why you should save for retirement – specifically, why you should start now.

Want two words that are likely to make your heart sing with glee? ‘Financial freedom’. Sounds delightful, doesn’t it – and many of us aim to achieve it.

That’s why it’s never too early to start saving for retirement. After all, who wouldn’t want to leave work and enter this new, liberating stage of life with a nice amount of money in the bank?

In this piece here on the Unity Mutual site, then, we’re focusing on how and why you should save for retirement – specifically, why you should start now. Read on…

Saving into a Pension: Why You Should

Do you have a pension? If not, now may be the time to think about it.

Saving into a pension might seem complicated, daunting even. Setting up a pension is a straightforward process, though, and it’s certainly worth your time to understand the benefits of having one.

For many, the State Pension won’t be enough to live on, which is why topping up your savings in a private pension pot may well give you that financial freedom you’ve been hoping for.

Here’s why it makes sense to save into a pension:

  • It’s a long-term savings plan with tax relief, which means some of your hard-earned funds – which would have gone to the Government – go into your pension.
  • Your regular contributions may be invested – if you save into a scheme known as a ‘defined contribution’*. This means your funds could grow as you near retirement age.
  • You can access the funds from your pension as soon as you reach the age of 55.

*With a defined contribution pensions saving pot, you can build up enough money to provide yourself an ‘income’ when you’re ready to retire, with the value of your pot based on your own contributions and your employer’s contributions (if applicable).

If you’ve not yet started paying into a pension, speak to your employer. Many employers are required to enroll their workforce onto a workplace pension scheme – and if you’re yet to hear about the scheme, make it the top of your to-do list to ask about it!

Pensions for the Self-employed

Self-employed? There are options for you too, with plenty of private pension schemes on the market.

You can transfer a pension pot from a previous employer into your new pension scheme – and often, your new provider will do that bit for you, saving you the stressful ‘life admin’ that comes with ringing up and doing it yourself.

Psst! Did you know, you can usually take up to 25% of your pension savings as a tax-free lump sum, whether you’re saving through your employer’s pension scheme or as a self-employed person?

How to Make the Most of Your Retirement Savings

As you would with a regular savings account, it’s important to regularly review your pension situation. If you feel your savings for retirement are on track – and are leading you down the path towards financial freedom, you probably won’t want to make any changes.

If not, it’s always worth checking if your current pension pot is looking like it will achieve the income you’d like by the time you reach retirement.

The Money Advice Service site has a handy tool, which is designed to allow you to check the progress of your pension and retirement savings – just head here to see how it works.

Savings Accounts

Saving for retirement doesn’t start and end with dedicated pension pots. Instead, you might have other savings and investments which will mean a healthy income for you once you hang up your workwear and say bye to the 9 to 5 life.

Everything from cash deposits to share-based investments may all add up to a tidy post-work income for you. Or perhaps you also rent out property, which may also mean a substantial pot for you in later life.

Guaranteed Investment Bond from Unity Mutual

However if you’re looking at other ways to save, have you considered whether any of our products are suitable for your circumstances? Investment bonds are policies where you invest a lump sum in a variety of available funds. Some investment bonds run for a fixed term, others have no set investment term. When you cash your investment bonds in, how much you get back depends on how well – or how badly – the investment has done.

The Unity Mutual Bond however is different, in that the amount you invest and the return that you make is guaranteed. With a minimum investment of just £1,000, (which can be held jointly with another person), by keeping your investment in the bond for the total of 5 years – you are guaranteed the return of 5.62% interest on your investment. Your investment is also 100% protected.

**See full terms and conditions via the link above

If you need financial advice

If you’re in any doubt about whether this product is right for you, it’s a good idea to talk to an Independent Financial Advisor (IFA). You can find a local financial advisor by visiting You may need to pay for a financial advisor’s help, so make sure you ask them about their fees first.

Terms and conditions apply to our Lifetime ISA. For more information read the product’s Terms & Conditions and the Lifetime ISA Key Information Documents.



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