How do different retirement funds compare? Here’s what you need to know to help you plan for retirement.
Saving for retirement is a crucial part of financial planning. The ultimate aim is to connect your financial decisions to the life you are planning for. Having a retirement plan suited to your specific needs can help give you peace of mind that you will be able to lead the life you want in your golden years.
There are different ways to save for retirement, including investing in a retirement fund. But how do these retirement funds compare and how should you use them for the best results?
Understanding how retirement funds differ can help you plan better and make informed decisions.
There are four types of retirement funds:
To understand how these differ, let's look at some of their key features:
Getting personal advice can help give you peace of mind that your retirement planning is on track. You can make a number of decisions to support a good retirement outcome. How much should you save each month? How do you allocate across the different retirement fund vehicles? How do you choose the best mix of investments available to you? How do you know whether you are saving enough? Should you supplement your retirement fund with additional savings? A professional financial advisor can help you answer these questions. They have the skills and expertise to help ensure your retirement plan supports the outcome you want, taking into account other factors that will affect your outcome, such as inflation. If you choose to invest in an RA, they can also help you make informed decisions about where to invest.
Even if you are still deciding between different retirement savings options or getting to grips with the rules of the fund you are currently invested in, the most important thing to remember is that every small contribution to your retirement savings makes a difference. So, start saving as soon as you can, contribute as much as you can, stick to your plan as much as you can, and speak to a financial advisor for guidance. And never take retirement money in cash when you change jobs.
This information is intended for general information purposes only and is not legal advice.
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