The single biggest reason why people start investing in shares is retirement.

If you are 10 years or more away from your retirement, then investing in shares can provide an additional source of funding.

What’s more, using shares to invest for your retirement can provide a number of extra benefits beyond the more traditional methods of pensions and annuities.

If you want to know more, keep reading or watch the video now:

Ageing Population

These days, we often hear about the ageing population.

Of course, it depends where in the world you live as to whether this is a particular problem for you.

Certainly in many economies including the UK, Europe, USA, Canada, Japan, China etc. this is a recognised problem.

Improving healthcare, diets and standards of living means that we are all living longer than we used to.

With busy lifestyles, less religion and better contraception, we are having fewer children than we used to.

So what does that mean for you?

Taken together, the above factors mean that there are fewer people of working age to pay the rising social security costs required to fund state pensions in retirement.

It also means that annuity rates available from private pension providers have been falling for many years now and are likely to continue to fall as the longevity factors increase further.

We are also seeing more and more companies transforming their final salary schemes (defined benefit schemes) into defined contribution schemes which is a fancy way of saying that they are passing the problem on to you!

So you can’t rely on your Government to fund your happy retirement.

And you can’t rely on your employer to fund it for you either.

Like it or not, it is your responsibility to fund your happy retirement or choose to go without as you get older!

So you need to save more – but how?

Retirement Planning

If you are lucky enough to have a job with a company pension scheme then the chances are that your employer will match any additional contributions you make into that scheme, up to a point.

This is another way of saying that the company will DOUBLE any money that you put in yourself.

That’s FREE money and there for the taking, so if you have an opportunity like this, grab it with both hands!

But if the company does not match your contributions or you are past the point where it will match your contributions, say above 10% of your salary (example), then you have better options.

If you don’t have a company funded pension (retirement account) then you can still contribute to a pension yourself and these come in many forms under many names (IRA, 401(k), SIPP, PP, Personal Pension, SP, Stakeholder Pension, etc.) but the principles of how they all work are very similar.

Essentially, you put pre-tax income in to the pension fund and pay tax on what you take out.

Any gains or income returns made on the assets within the pension fund grow tax-free for as long as they stay in the fund.

The major benefits of this way of doing things are the tax-free bit on the way in and the tax-free bit whilst it is growing.

The downside is the paying tax bit on the way out which is okay if you are a higher rate tax payer pre-retirement and a lower rate taxpayer in retirement but it is not so good if you are Mr or Mrs average with the same rates of tax on the way in as on the way out.

The other big issue with pension accounts is that they have rules attached to them such as:

  • you can’t get at your money until you are a certain age when the Government thinks you should retire;
  • the age when the Government says you can retire is getting older;
  • this means you are having to work for longer before you can get at your money;
  • you have to spend your fund on an annuity when you have been retired a certain number years;
  • and so on.

In essence, these rules exist to protect the Government.

These rules do not exist to help you to have a happy retirement!

Personally, I don’t like rules of this sort, but I like the tax-free benefits, because I love to play the tax man at his own game (all legally of course)!

So it is a balancing act.

Traditional retirement accounts are useful and should form part of your retirement planning but I don’t recommend you putting all your eggs into this one basket.

So what else can you do?

Retirement Investing

As well as putting extra money into your retirement account to get your hands on the FREE money offered by your employer and the tax man, you can consider additional “investment streams”.

Think of these as planting a few investment seedlings in your garden!

The longer you leave them to grow, the taller and stronger they will become, maybe turning into a mighty Oak Tree or a giant Sequoia (yes I’ve seen them in Yosemite National Park)!

If you can feed them and water them every now and again, they will grow faster.

If you plant them in the best place with fertile ground to their choosing and with the right amount of sunlight, they will grow faster still.

So it is with investing for retirement.

Start early, add more cash regularly and invest in the right companies at the right time.

If you think you’ve left it too late, start anyway.

As long as you have 10 years to go before you withdraw the money then it’s better now than never!

What’s more, I’m going to show you a way of investing for retirement that doesn’t have the rules attached that I mentioned above.

It’s also a way that you can continue to invest, growing your fund, even while you are in retirement drawing a pension income from your traditional retirement account!

Do you want to know what it is?

Investing In Shares

Shares are much more flexible than retirement accounts.

Indeed, most retirement accounts consist of a large number of share investments – mostly in large blue-chip companies that you would know and recognise.

But there’s nothing to stop you buying and selling shares yourself as an additional retirement tree in your retirement garden!

Some of the advantages of shares compared to pensions are as follows:

  • You decide when you want to draw down your income, not the Government;
  • Transaction costs for shares are low, much lower than pension fees;
  • If you need the money before retirement, you can get it back again;
  • You don’t have to buy an annuity with it but you can if you want to;
  • You don’t necessarily have to forego the tax benefits when share investing;
  • There are lots of different shares to choose from – you get to choose;
  • You can invest as little or as much as you like;
  • You can start with small sums such as £50 or £100 if you wish;
  • You can invest monthly or invest a lump sum if/when you have one available;
  • You can invest spare cash when you have it and take a break when you don’t;
  • You can hold shares to generate income when you need it;
  • You can hold shares to achieve capital gains whilst growing your fund;
  • You can buy a basket of different shares to build a de-risked portfolio;
  • Apart from stock picking and buying, it’s all low-maintenance after that;
  • etc.


This is obviously not an exhaustive list and I could go on but I’ve probably listed enough advantages.

If you are new to shares you have probably not given them much thought before but these advantages make them worthy of investigation.

That’s what I thought 25 years ago when I started investing in shares.

And what’s more, if you can add up, understand percentages and have a reasonable level of intelligence, then you can invest in shares too.

You don’t have to be a Harvard business graduate or a rocket scientist to invest in shares.

You don’t need to have vast pots of money.

And it’s never been easier or cheaper to invest in shares than it is nowadays.

What’s Your Retirement Plan Look Like Now?

There’s no better time than now to make a positive start on your retirement investing garden!


Make now the time when you finally start INVESTING in your RETIREMENT and start investing in SHARES


YOU can start right now by signing up for a FREE guide -“How To Invest In Shares.

This quick-start guide won’t be available free for much longer so why not sign up below now and make a positive start?

If you have any questions, just leave me a comment below.