There’s a common misconception that as a young person, a pension is not needed. Well, you’re wrong!
It’s a matter of asking yourself a few questions, like what are you going to live off when you retire? What even happens when you retire? Who’s going to support you when you retire?
Seems a while away right? No! Taking those little steps from an early age means you can take big leaps when you retire! Simples.
Fancy learning 5 steps to start saving for your pension? You best read on!
FILL FILL FILL
Start filling your pension pot right now! Yes, you may be auto-enrolled into your company pension but saving extra means you can relax comfortably when you retire! Starting to save from an early age means smaller contributions, whereas as you mature, the more you’ll need to save on a monthly basis! Time is your friend, it may not seem it, but it really is. Embrace time and start looking after your pension pot!
OH NO – WHAT AM I GOING TO LIVE OFF?
It may of not even crossed your mind right now but in all seriousness when you retire, what are you going to live off? Did you say your pension? That all depends on what you’re contributing in all honesty. Saving the minimum per month might not give you a comfortable life, that’s why today is now more important than ever to plan!
I NEED EXTRA MONEY NOW – IM GOING TO REMOVE MYSELF FROM AUTO ENROLMENT
Wow! Taking that extra back now means your future suffers! Yes, you may need it but I can guarantee that your future will suffer a lot more than what you are today! You’re young, embrace life and keep auto-enrolled because when you retire, you won’t get the support you are getting today!
I LIKE SAVING – CAN I SAVE MORE?
Of course, you can! If you can put more into your pension you really should! Have you received a pay rise or a bonus from work? Ring-fence that money for your retirement.
I’m not saying it’s easy to do that because I know it can be hard, life is expensive, but it’s simply essential for you to make provisions for your retirement.
If you can save money then you really should!
STARTING NOW IS WAY TOO EARLY FOR ME!
If you’re younger, yes it’s easier to delay, whereas if you’re older it’s easy to worry. But in all honesty, it’s never too early or too late to begin saving.
Whilst you are young, your investment has time to grow, meaning you’ll get a greater return, that’s why it’s important to start young for your pot to mature.
I NEED HELP – RIGHT NOW!
If you’re a little confused about any aspect of your pension, then it’s a great idea to seek help! Speak with me, Dan the IFA Man for your pension health check. Remember, taking those little steps today means greater leaps when you’re older.