If you have just qualified and are now taking the first step on the career ladder, retirement is probably the last thing on your mind. However, statistically and logically, the sooner you start to plan for retirement, the more effective the results.
Even if you have been working a while, it is never too late to start saving and planning for your future.
No time like the present
Previous generations didn’t start saving for their retirement until they were well into their 30’s and some left it much later and are now starting to panic as retirement approaches.
The truth is it is never too soon to start making plans for retirement, even when it seems a long way off, as funds have more time to mature and grow and the strategy has time to be tweaked along the way.
Flexible pensions
Although there are many options when it comes to retirement planning, pensions are still used by most doctors and dentists as the number one retirement product.
The good news is there is much more flexibility now with pension planning. If you are a cautious and inexperienced investor, which the majority of young people are, there are auto-investment options available. Alternatively, for those willing to increase the risk factor for a potentially higher reward, options are available too where there is more choice on where investments are placed.
Why not complete our questionnaire to assess your attitude to risk?
Young people have the added advantage of time when it comes to taking risks. Typically, a little more investment risk can be afforded with time to reassess the retirement strategy.
Tax relief too!
Pension contributions also earn tax relief so for every £80 you contribute, this becomes £100, for a basic rate tax payer. It is an excellent means to keep you from paying higher rate tax whilst contributing to your future.
Learn more about Tax Relief on Pension Contributions
Even if you have qualified and you have not yet found your first job, you can contribute to a pension, up to £2,880 per year, which gets topped up with tax relief to £3,600.
So there really is no time to start your retirement plan like the present.