There has been a big focus on pensions over the course of 2022. From concern around the impact of market volatility to the Government proposals on auto-enrolment and the recent tax deadlines. But one thing remains clear it is never too late to start your retirement planning. And it is also never too early!
It is clear that younger age groups have little interest in retirement planning. The chart below demonstrates that age is a significant motivational factor when it comes to retirement planning. Interest is low at a younger age and there is only a significant increase when an individual reaches their late forties and into their fifties. While it is not too late to start a pension at that stage, it does leave far less time to make a meaningful provision.
The sooner you start to make a provision for your retirement, the easier it is financially for two main reasons:
- The cost of the outlay is spread over a longer period and so the financial impact is reduced
- Investing early and staying invested allows more time and potential for your savings to grow
There are many reasons cited for not starting a pension earlier. These range from paying off student loans, saving to purchase a home to not considering you can afford to start or just simply not getting around to it. However, the fact is it’s never too early to start saving for retirement. Once you start working and can set aside even a small amount each month, you will be on your way to building a fund. Then as you earn more in your career, you can increase the amount you contribute.
The key is to start. The sooner you can start to save money for the future, the more secure you’re going to feel about retirement. So, no matter what age you are or what stage of your career, it’s worth thinking about your pension. Just get in touch if you’d like to start the conversation.
24 November 2022