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The best ways to save for your retirement

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Aside from saving for a house or a holiday, creating a fund for your retirement is one of the most popular reasons to start saving, and it’s never too early to do so. While most of us already contribute a small sum of our monthly payslip to an employee pension scheme, there are still some things you should consider to help give your retirement savings a boost. 

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For those who are serious about generating a higher income and more lucrative financial future, investing is a great idea. Property investment, in particular, is one of the most popular investment types for those hoping to boost their finances. In the UK, a number of cities are becoming widely known for their property market, with north-west cities like Manchester and Liverpool taking the lead. Property investors pursuing opportunities in the north-west such as those from property company rw-invest.com are benefiting from some impressive rental yields and increasing rental demand. Better yet, Liverpool and Manchester have high capital growth potential and a track record of house price growth which is predicted to continue into 2022. This means that buy to let investors in these cities can expect a significant return on investment in a more immediate sense, along with the possibility of their property increasing in value by the time they choose to resell. 

If you’re considering property investment as a method of saving money for your retirement, it’s important to take all the right steps. Often, starting with a lower-risk property investment such as student accommodation can be a good place to start. With student property, there’s always a constant stream of demand thanks to the booming UK student market, while these type of properties are also known to bring high rental returns, especially with more luxury student accommodation. Once you've tried buy to let investment, you may find that you enjoy the process so much that you want to build a larger property portfolio to help towards retirement. 

If property investment isn't your cup of tea, there are some other ways to boost your retirement funds effectively. One method is to combine your existing pension scheme with a lifetime ISA savings account. Lifetime ISA’s help people to save money while gaining interest, with the government providing a 25% bonus on savings contributions. This means that if you put the maximum sum of money into your account, you’ll receive a bonus of £1,000 every 12 months. In order to open a lifetime ISA, you must be between 18-39 years old and understand that the money in your account is only to be used for buying your first home or saving for retirement. There are also limitations on early withdrawal — if you decide to take money out of your account prematurely, you face losing money through early withdrawal charge’s. 

As with all methods of saving money, it’s better to start sooner rather than later in order to reap the benefits of interest rates. While this can be easier said than done for many people, particularly millennials struggling to save for their first home, there are tricks to make the process easier. For example, setting up a direct debit of a small sum of money into your savings account each month will make a difference in the long run, without you feeling as much of a strain on your bank account.