It's best to start saving towards your retirement as soon as it's conveniently possible. This is because you may need to pay in up to double to get the same pension income for every ten years you wait.
If you're in your 20s and 30s you've probably got so many priorities competing for your attention, that retirement may be the last thing on your mind. It may feel so far away that you can think about it later.
But, if you start saving for retirement in your 20s or 30s (even if it's a moderate amount), you'll have a great advantage over those who start later.
If you're in your 20s or 30s, you're likely to spend 20 years in retirement - or even longer.
Time allows your savings to compound
See the difference it can make when you start saving and investing early - even if you put in the same amount in total as someone who starts much later.
Here's how much difference it can make when you start saving and investing early - even if you put in the same amount in total as someone who starts much later.
David starts investing £100 a month when he is 25; Mike invests £200 a month from the age of 45, so they both save the same £48,000 by retirement...
Assuming a 5% annual return, the effect of compounding has longer to work on David's investments, and so he ends up with almost twice as much as Mike.
Here's how much difference it can make when you start saving and investing early - even if you put in the same amount in total as someone who starts much later.
David starts investing £100 a month when he is 25; Mike invests £200 a month from the age of 45, so they both save the same £48,000 by retirement...
Assuming a 5% annual return, the effect of compounding has longer to work on David's investments, and so he ends up with almost twice as much as Mike.
Benefits of a pension
Tax relief boost: For every £80 saved, the government provides £20 in tax relief, and you may get more back in your tax return.
Contact us to see how we can help you
Affiliates
Our services relate to certain investments whose prices are dependent on fluctuations in the financial markets beyond our control. Investments and the income from them may go down as well as up. Past performance is not a guide to future performance.