How to Create a Retirement Portfolio

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Preparing for retirement is a long haul and ideally, you should start saving when you are in your 20s or early 30s. This will give you a lot of time to save slowly and think carefully about what your needs are. However, this isn’t always possible and with so many changes to the way we work, many millennials simply aren’t saving at all yet.

For some, it is a case of not yet having enough income to put money aside. But for a generation who aren’t necessarily following the classic career path, some are simply not aware of the options available to them when they don’t have an automatic company pension.

So, if you want to start sorting out your pension portfolio, here is what you can do to make sure that you have a bright future ahead.


If you are worried about not saving for your pension because you are focused on getting on the property ladder, don’t worry too much yet. Your property is a brilliant asset to have and will stand you in good stead. Depending on your age, you will be looking for different things, though.

Young, first-time buyers should look for properties that will work as an investment. Fixer-uppers are usually much cheaper and present a good opportunity to make a small profit. Do make sure that you get a structural survey before you buy, though, as you don’t want any unexpected costs to arise. Older buyers may be looking for a forever home so focus on things that will make later life a little easier to manage after retirement.


In the USA an independent contractor 401k is a great way to save for a pension because it allows you to save money before tax and withdraw it tax free. Unfortunately, this pension type doesn’t exist in the UK, but you can take out an ISA which works in a similar way.

There are a few different types of ISA but the main benefit of all of them is that the interest you make on the money is not taxable. This is especially useful for stocks and shares ISAs where you are looking to make a good return on your investment. There is a limit to how much you can save each financial year, but this is a great foundation for your savings in general, not just your pension plan.

Pension Plans For Everyone

The vast majority of people in the UK will qualify for the state pension which is based upon your national insurance contributions. This is good because it comes out of your paycheck automatically or will be sorted for you when you file a tax return.

However, this basic pension may not be enough for your desired lifestyle. In this case, you should see whether your workplace has a pension you can sign up for. If you work for yourself, or just want another opportunity to save, you should also look into getting a personal pension plan.

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