30 May 2024 Have you just started your career in the UK? Congratulations! However, in the excitement of building a thriving professional career, don’t forget to secure your future. One of the most important financial decisions you will ever make is retirement planning, and it will be lucrative if you start saving for your future early on.
At One Stop Legal, we work with retirement planning experts who will help you determine your retirement goals, estimate your retirement income requirements, and create a personalised plan to make sure you don’t compromise on your desired retirement lifestyle. We urge you to start planning for retirement in the UK early on. For young professionals, NEST pensions are an excellent way to start creating a solid retirement fund. NEST pensions is an automatic enrollment scheme in the UK that is meant to be utilised by young professionals. Let us give you more information about this scheme so you can make an informed decision.
What is NEST?
NEST is the National Employment Savings Trust, a workplace pension scheme that automatically enrols most UK employees aged 22 to State Pension Age. Your employer will deduct a small portion of your salary and contribute an additional percentage towards creating a pot of money for your future.
Why is it important to have a NEST pension?
If you want to live a comfortable retired life, state pensions alone might not be enough. NEST allows you to save early so you can use the power of compound interest to grow your retirement savings over time.
Understanding the nuances of your NEST account
- Contributions – Contributions are done by both your employer and you. To boost your retirement savings, you can choose to increase your contribution percentage.
- Investment strategy – NEST provides you with a default investment strategy. However, you have the option of choosing a different risk profile depending on your risk tolerance and investment goals.
- Online account access – Your NEST account can be managed online. You can check your contributions, monitor your investment performances, and have a fair idea of your estimated retirement income.
How to make the most of your NEST pension?
- Review your rate of contribution – The minimum contribution will help you get started but if you want to live a comfortable retired life, you may have to consider increasing your contributions as your salary grows. On doing so, you will be able to accumulate a larger pension pot.
- Understand the different investment strategies – Different investment options are offered by NEST. If you need help deciding which strategy aligns with your risk tolerance and retirement goals, talk to One Stop Legal’s team of professionals. Our team consists of retirement planning experts and investment professionals.
So, start planning for retirement in the UK as soon as you get your first job. If you need any help, don’t hesitate to call One Stop Legal to schedule a consultation.
