Saving for a new car or new home are some of the major reasons people choose to save, other reasons may be slightly smaller like saving for a summer holiday, or even a new suit for an impending wedding. However, creating a fund for retirement is one of the most popular reasons people begin to save, and it is never too early to start. Most of us are already contributing a percentage of our monthly income into a pension scheme, although there are still many paths to take to give your retirement savings a little extra boost.
For those in particular who wish to generate a higher income, and secure a more prosperous financial future, property investment is one of the safest and most robust ways to do so. Property investment over recent years has emerged as one of the best and most popular ways to boost your finances.
Across the UK, numerous cities have gained a reputation of having a lucrative property market, with north-west cities like Manchester and Liverpool highlighted as top-performing cities. Those who choose to invest in the north-west such as those from property investment companies like RW Invest are benefitting from excellent returns on investment. Success in the property landscape has well and truly shifted from the South, as impressive rental yields, increasing rental demand and high potential for capital appreciation make Northern regions the best economy to invest in.
Using property investment to save for retirement is a great method of saving money. However, it is essential that you take the right steps for it to be a success. Starting with a low-risk investment would be the safest option, which makes student accommodation an enticing prospect. Student property has many advantages over traditional residential investments as there is always a demand for housing thanks to a huge surge in student population across the UK. Investing in buy to let accommodation works well if you choose to build up a diverse portfolio, ranging from off plan developments to completed, student housing to residential buy to let, and those found in the city centre as well as on the suburbs. Diversifying your portfolio can help to protect your funds and mitigate risk by spreading across multiple asset classes. The major benefit here is that if there are any sudden changes to the investment market or economy, this will have a diluted effect on your investment portfolio as a whole.
If property investment isn’t for you, there are other excellent ways in which you can boost your retirement funds efficiently and effectively. Ever considered combining your pension scheme alongside a lifetime ISA savings account? A lifetime ISA (also referred to as a LISA) appreciates through interest, with the government providing a 25% bonus on all savings contributions.
There is one common thread amongst all forms of ways to save money. The number one being it is better to start as soon as possible in order to reap the benefits that are available to you. Of course, the word ‘saving’ is easier said than done, particularly for those millennials coined ‘generation rent’ that are struggling to save for their first home due to escalating unaffordable prices. However, there are numerous methods designed to alleviate stress and make the process more achievable.