How to Develop Good Saving Habits

Why do you need to save?
It is important to develop good saving habits from an early age. When you are in your 20’s and 30’s, putting savings aside and investing in your future may not seem like the most important things for you to focus on. It is easy to forget to plan for your future and to opt-out of investing in a pension scheme. Is this a mistake that you will ultimately regret? When you retire from your job, your pension will take the place of your salary and become your main source of income.
The retirement age in Ireland has increased from the once magic number of 65 and is guaranteed to continue to do so.

Currently, all PAYE employees are entitled to the State Pension once they reach the age of 66. In 2021 it will have increased to 67 and by 2028 you will have to reach 68 years of age before you can claim the pension.
With the life expectancy in Ireland rising, there will eventually be fewer people working and more people receiving the State Pension. By the year 2030, there is estimated to be 3 people working for every 1 retired person and by 2050 there is estimated to be 2 people working for every 1 retired person. (Source National Pensions Framework, 2010)

This increase in life expectancy will ultimately put more pressure on the State Pension scheme. The current State Pension is only €248.30 per week which for many people will be a substantial drop in income upon retirement. These are just some of the reasons why you should invest in a private pension. It’s better to have a concrete pension plan in place rather than depend on the State Pension alone.
To enjoy your retirement fully and to have a comfortable standard of living, it’s important to have a pension fund in place that can help you to live the lifestyle you ideally want to have. The sooner you start planning for your pension and putting money aside, the better it is for you. This isn’t to say you can’t start your pension fund later in life.

Pension funds are available for everyone whether you are self-employed (including farmers), a contract worker, an employee or a company director. Our Financial Advisors will discuss your options with you and advise on the right pension fund to suit your needs and requirements.

Why do you need to save?
It is important to develop good saving habits from an early age. When you are in your 20’s and 30’s, putting savings aside and investing in your future may not seem like the most important things for you to focus on. It is easy to forget to plan for your future and to opt-out of investing in a pension scheme. Is this a mistake that you will ultimately regret? When you retire from your job, your pension will take the place of your salary and become your main source of income.
The retirement age in Ireland has increased from the once magic number of 65 and is guaranteed to continue to do so.

Currently, all PAYE employees are entitled to the State Pension once they reach the age of 66. In 2021 it will have increased to 67 and by 2028 you will have to reach 68 years of age before you can claim the pension.
With the life expectancy in Ireland rising, there will eventually be fewer people working and more people receiving the State Pension. By the year 2030, there is estimated to be 3 people working for every 1 retired person and by 2050 there is estimated to be 2 people working for every 1 retired person. (Source National Pensions Framework, 2010)

This increase in life expectancy will ultimately put more pressure on the State Pension scheme. The current State Pension is only €248.30 per week which for many people will be a substantial drop in income upon retirement. These are just some of the reasons why you should invest in a private pension. It’s better to have a concrete pension plan in place rather than depend on the State Pension alone.
To enjoy your retirement fully and to have a comfortable standard of living, it’s important to have a pension fund in place that can help you to live the lifestyle you ideally want to have. The sooner you start planning for your pension and putting money aside, the better it is for you. This isn’t to say you can’t start your pension fund later in life.

Pension funds are available for everyone whether you are self-employed (including farmers), a contract worker, an employee or a company director. Our Financial Advisors will discuss your options with you and advise on the right pension fund to suit your needs and requirements.

How can you develop good saving habits? 

  1. Join a Pension Scheme – If your employer or place of employment offers a pension scheme to its staff you should avail of this as soon as you can. Even if you are only in your 20’s you should still join the scheme and begin saving for your future. You are better to start saving from as early an age as possible to ensure you can live comfortably in the future. Also if you want to secure a mortgage you will need to show you have a good credit score.
  2. Budget. Develop a monthly budget to keep track of your income and expenditure levels. Include all sources of income and expenditure in your budget, be honest. By keeping track of your expenses you can begin to identify areas in which you can save money. It will help you understand your finances better and will highlight how much money you can ideally save each month without having to give up the things you love.
  3. Shop around when shopping for products, services or utilities, be sure to shop around. Contact as many providers as possible to ensure you get the best deal. Ask all providers for quotes and details so you can make informed decisions that will save you money in the long run.
  4. invest the vast majority of people put their money into a Deposit Account where it takes years for it to grow. Instead why not invest your money in a retirement plan or funds. These saving options give you a greater rate of growth for you money. Our team of Financial Advisors can help you determine which investment option is best for you and yoru money.
  5. Needs over Wants, Everybody has a list of things they would love to own or do. We all have our secret ‘If I won the Lottery’ list, but unfortunately, we are not all lucky enough to win such significant sums of money. Rather than spend your money on the things that you want but ultimately may not need, spend your money on things that you actually need and will use. Be wise with your spending.

When you invest your money in the account of your choice make sure to review your savings on a regular basis. Consult with your Financial Advisor regularly where they will update you as to the progress of your savings and they will discuss any recommendations they have with you. You can sit back and watch your nest egg grow as your Financial Advisor takes care of the business side of your finances. It is always a good idea to save money and have a rainy day fund, because you never know what the future can hold.

How can Key Financials help you?
Every recommendation we make is designed to help our customer achieve their financial goals. And because our company is an independent brokerage, your needs are always placed before our own. We will research the products from a number of providers across the market, to ensure that you have access to the best possible product for your specific needs. We are funded by the financial companies we work with, you will never have to pay us fees or commissions.

Our goals are fully aligned with your goals, and we are committed to delivering impartial advice and strong value to our clients.
We welcome frequent contact from our customers, to ask a question, to make a suggestion – or tell us about a change in circumstances which might influence their investment choices.

Join a Pension Scheme – If your employer or place of employment offers a pension scheme to its staff you should avail of this as soon as you can. Even if you are only in your 20’s you should still join the scheme and begin saving for your future. You are better to start saving from as early an age as possible to ensure you can live comfortably in the future. Also if you want to secure a mortgage you will need to show you have a good credit score.
Budget. Develop a monthly budget to keep track of your income and expenditure levels. Include all sources of income and expenditure in your budget, be honest. By keeping track of your expenses you can begin to identify areas in which you can save money. It will help you understand your finances better and will highlight how much money you can ideally save each month without having to give up the things you love.
Shop around when shopping for products, services or utilities, be sure to shop around. Contact as many providers as possible to ensure you get the best deal. Ask all providers for quotes and details so you can make informed decisions that will save you money in the long run.
invest the vast majority of people put their money into a Deposit Account where it takes years for it to grow. Instead why not invest your money in a retirement plan or funds. These saving options give you a greater rate of growth for you money. Our team of Financial Advisors can help you determine which investment option is best for you and yoru money.
Needs over Wants, Everybody has a list of things they would love to own or do. We all have our secret ‘If I won the Lottery’ list, but unfortunately, we are not all lucky enough to win such significant sums of money. Rather than spend your money on the things that you want but ultimately may not need, spend your money on things that you actually need and will use. Be wise with your spending.
When you invest your money in the account of your choice make sure to review your savings on a regular basis. Consult with your Financial Advisor regularly where they will update you as to the progress of your savings and they will discuss any recommendations they have with you. You can sit back and watch your nest egg grow as your Financial Advisor takes care of the business side of your finances. It is always a good idea to save money and have a rainy day fund, because you never know what the future can hold.

How can Key Financials help you?
Every recommendation we make is designed to help our customer achieve their financial goals. And because our company is an independent brokerage, your needs are always placed before our own. We will research the products from a number of providers across the market, to ensure that you have access to the best possible product for your specific needs. We are funded by the financial companies we work with, you will never have to pay us fees or commissions.

Our goals are fully aligned with your goals, and we are committed to delivering impartial advice and strong value to our clients.
We welcome frequent contact from our customers, to ask a question, to make a suggestion – or tell us about a change in circumstances which might influence their investment choices.

Monaghan Office


42 Dublin St,
Monaghan,
Co.Monaghan
H18DX90


049 4326841

[email protected]

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Drumlin Financial Services Limited t/a Key Financials is regulated by The Central Bank of Ireland. Registered Office: Aeta Place, Gortnakesh, Cavan, Co Cavan. Company Registration no. 407677

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