Here are some guidelines for you to consider if you are close to retirement and have not saved enough. Some of these decisions may be painful, however they can help you take that next step towards your retirement goal. It is never too late to start; only too late if do nothing at all.

Here are some points to consider:

Increase Personal Savings - try to save at least 20% of your income and reduce expenses
Invest That Saving Into TAX Efficient Saving Plans
Review investments that are equity based, such as shares
Explore taking a second job to boost your incomeor start your own business
Do not invest in anything that you are uncomfortable with and set up a program to monitor investment returns
You may have to delay your retirement - work full time or part time beyond your planned retirement age
Review your goals - you may have to reduce your retirement expectations
Check on the level of State Pension you will receive, if you retire later than the normal pension age
You may have to use your home - rent out a room or move to a less expensive accommodation

Sell assets that are not producing much income or growth and invest in income-producing assets.

The charged levied by the provider under group personal pension plan may be lower. As the provider is dealing with bulk business, the employer may able negotiate better terms than you get individually (i.e. administration cost). Your employer will normally contribute a percentage of your salary to your pension plan, improving the amount you will receive when you retire.

As your salary increases automatically, so does yours and your employer’s contribution.

Your contribution will attract Tax relief. For every £1.00 you pay into your pension, the Government will add the basic rate of tax to your pension plan.

Your employer will normally deduct your contribution from your pay and send it to your pension provider.

Your employer may be able to negotiate better terms with the pension provider on behalf of a group of people. For instance, a reduction in administration charge.

The range of investment funds available can be limited. This will depended on the scheme you join.

Financial Markets

Investments such as shares and bonds are bought and sold on “financial markets”. So are currencies such as the British Pound Sterling…

Building Wealth

Now that you have defined what wealth means to you, and are familiar with most of the terms, how can you build your own wealth?