So when should you start thinking about retirement? The answer, according to many experts, is as early as possible. The earlier you start making plans and paying into a pension (this will soon become compulsory thanks to auto-enrolment), the better quality of life you will have when you retire. Thinking you’re ‘too young’ to start thinking about pensions is one of the biggest mistakes many savers make, purely because every year you work without paying into a pension, you are essentially losing money.
People live longer nowadays than they ever have done before, which can often mean that retirement stretches out for longer than you think. In order to avoid living off a pittance when you retire, it’s important to put away some savings early on. It’s better to save smaller amounts over a longer period of time, than to rush paying into your pension in the last five years before you retire.
Savings need time to grow, and the longer you give them, the better they will look when you finally receive those projected pension figures. Would your income now be enough to live on in 20 or 30 years? Think of how much you would need to save in order to achieve that figure when you retire. You are the only person who can save for your future.
If you are rapidly approaching retirement age and still worried about how much you’ll be able to draw when you retire, get some advice. Independent financial advisers are often full of tips that can help you to boost your income close to retirement, and you can be sure that they are impartial, with only your wellbeing and financial status in mind. Just as it’s never too early to think about your retirement, it’s also never too late to boost your retirement income and ensure you are set up for your life post-work.
If you have worries about your pension plan or you simply want to reassure yourself that you’re on the right track, speak to Jones Hill independent financial advisers today.
01225 775923
