Jan 19 2009
People who are looking to commence saving for retirement have been given some expert advice.
Writing for the Motley Fool, Jane Baker recommended self-invested personal pensions (Sipps) as one option.
She stated: "Sipps give you far more freedom when it comes to choosing where to invest your pension money and are more flexible when you want to retire."
Ms Baker also said that people should begin saving even if they can only afford to make small contributions to begin with, adding that such investments can still grow into a "decent pensions pot" by the time people give up work.
Another tip provided by the expert was to increase contributions each year in order to keep up with inflation.
She went on to suggest that, if an employer offers to make pension contributions, is "almost certainly" worth taking them up on it.
Following Ms Baker's advice may help some people avoid having to delay retirement due to a lack of funds.
According to research published by the Life Trust recently, as many as 12 per cent of adults believe that they will have to delay giving up work by up to five years for this reason.
