The trick is to start investing for your retirement as early as possible. The longer you leave it, the less chance there is of building up enough funds to allow you to comfortably retire. Comfortably retire, is a relative term as everyone's situation is different. The following items represent some of the opportunities available to you [in no order of importance] for generating an income in the run up to and during your retirement.



1.Retirement Annuities; an annuity is a payment made by an insurance company to an individual for the rest of your life in return for you giving them a capital payment. So for example, let's say that you invest in a personal pension plan with an insurance company for 30 years. When it comes to you retirement date, the amount of money that has built up in that pension plan, let's say $100,000 is then traded in for an annuity. You can either buy this annuity from the insurance company that you have built up your pension plan with or you can search the annuity market for the best annuity rates. A financial adviser can help you do this. But once you have bought your annuity then that's it, there's no going back. So choose wisely and do your research.

2.Fixed Deposits in Banks; This is another very popular method of investing for retirement. Every bank pays out a healthy interest rate on the invested principal, due to which after some years the invested amount multiplies. If kept for a significant number of years, the little amount invested in fixed deposits could multiply and be a good source for spending the life comfortably after retirement. One of the better aspects of banks [even in today's credit crunch environment] is that they are a safe house for your money. You will pay for this safety by being offered a lower interest rate.

3.Term Insurance Policies; Term insurance policies are set for a fixed period of years, which can be either a short or a long period of time. The investment is done in the form of premiums after regular intervals of time. The premiums are collected by the insurance company and the interests are accrued on them. When the stipulated term is over, the insurance company pays out this amount to the person. Many people buy term insurance policies to tide them over after their retirement.

4.Real Estate Investing; Most people have paid off the mortgage by the time they reach retirement age. If they timed buying their property right, which most people will have because of the huge time frames involved circa 25 or 30 years, it is almost certain that their property will have built up significant equity. This can be a good option for investment. Many people sell their homes after retirement and buy smaller homes in a more peaceful area. The money they save is good enough to look after their needs in their post-retirement years. This is a clever idea if you have not had the opportunity to save for your retirement through a company or personal pension plan.