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This article does not constitute advice. Professional advice should be taken prior to acting on any part of it.
Q: When is the best age to start saving into a pension?
Answer: When it comes to preparing for your future, the sooner you start planning the better! It’s a huge undertaking to build a nest egg, so we recommend you start contributing into a pension and saving for retirement as soon as you start earning, even if you can only afford a small amount each month.
When organising your savings plan, it’s important to balance paying off your debts with contributing to a pension. Unfortunately, the interest you’ll earn on savings won’t overrule the interest you’ll pay on a credit card or personal loan debt. You’ll also want to keep some funds for emergencies – about three months salary is the general rule.
As life expectancy has increased, and it is now expected that you will live 15-20 years into your retirement, it is important to remember that you’ll need more funds available to you than for previous generations. A pension that was meant to last after retirement years ago just won’t go as far today.
So if you don’t start saving early on in your career, you’ll have to invest more later on. Don’t forget about compound interest as well – stashing away money early on in life will definitely be worth it.
The earlier you start saving, the more time your money has to grow, enabling you to have a comfortable retirement. Planning for your retirement may seem daunting and complicated, but the experts here at Dental and Medical Financial Services will ensure you’re aware of all the options available and help you put together a plan for the future.