SIX SIMPLE TIPS TO BOOST YOUR RETIREMENT SAVINGS

Whether you're a few years away from retirement or you're almost there, it's important to think about the lifestyle you want to have when you reach this important milestone. That way, you can work out how much money you should save and the different ways you can use your retirement savings.

If you have a defined contribution pension

Here are six simple tips you can try:

•Use a pay rise as an excuse to save

If you can't put as much into your pension as you'd like, here's a simple tip that can help you save more. Start by putting away an amount you can afford, then whenever you get a pay rise, transfer some of that into your pension.

That way, you won't get into a habit of spending your pension, and you'll still benefit from the hard-earned money you have sitting in your bank account.

•Pay more at the end of your regular spending

Whenever your regular spending ends, you can try a similar move to the above. For example, if you pay off your car loan, you could put the extra money into your pension plan.

Even small increases like these can make a big difference - especially in the long run. If you need to spend less in the future, you can usually reduce your contributions (if you want to).

•Maximise your employer's contribution

Some employers will increase their contributions (up to a certain limit) when you increase your contributions. So if you pay 1% or 2% more of your salary, they may also contribute more. Ask your boss for details of whether they contribute to your pension scheme and how much.

•Lump sum

If you have the cash, a lump sum into your pension is a quick and easy way to grow your money. As with other money put into your scheme, the government will give you a tax break (up to a limit).

For example, if you receive a bonus from work and put £1,000 of it into your pension scheme, the government will add £250 in tax relief if you are a basic rate taxpayer - and you may be able to claim back more if you are a higher or additional rate taxpayer.

•Delay using your pension

The longer you leave your pension untouched, the more likely it is to grow. If you've had it for a long time, investing it for a few more years could make a big difference. The benefit of delaying your pension is that the longer you delay, the more your state pension will be worth when you claim it. It is estimated that for every nine weeks you delay claiming your state pension, your pension will increase by 1%. So if you delay for a year, your pension will increase by 5.8%.

•Choose your investments carefully

Where your pension is invested can have a huge impact on your returns in retirement. For example, if your plan has a ‘default’ investment option – where your money is automatically invested when you join the plan – this may not be the best for you. So it’s worth looking at which investment fund your money is invested in.

What to do if you don’t have a pension?

If you are approaching retirement and are concerned about your financial situation, there are a few steps you can take:

•You may be able to increase your state pension if any of the following apply :

You are not eligible for the basic state pension Your basic state pension is less than £101.55 per week

•Review your circumstances

If you are married or in a de facto relationship, you have a spouse or de facto partner, you may be able to increase or inherit your state pension.

•**Spend less **

Spending less inevitably means you have to re-examine your lifestyle. Even if you save a little on your spending, it will help to reduce your overall spending. We have some great budgeting tools that can help you develop sensible spending habits and manage your money more wisely.

•Keep working

More people than ever are choosing to work rather than retire, with the number of people aged 60 to 75 working having increased by more than 7% since 2001. In fact, 28% of the UK working population is now aged 50 or over. According to government data, the average age of exiting the UK labour market has increased over the past two decades.

In summary, if you need help paying for basic living expenses, such as a mortgage or rent, we may be able to help. Find out more about the financial support we offer to help you manage the rising cost of living.