Pension planning-be proactive and start early

Let’s be honest, the last thing you’ll be interested in discussing if your 20 years old is pensions. I mean retirement is more than 40 years away, so why would you?

Most young people in their early 20’s are either paying off student loans or trying to save money to help get them on the property ladder, a pension or thinking about retirement is probably the last thing on your mind.

For many, the only association they will have with a pension is the first full time job with a workplace pension taken direct from their salary. Unfortunately, apart from the amount taken each month this is about as much as they know about what it will mean in retirement.

We’d just like to highlight to all young people what a powerful investment tool you all have, TIME!

Investing a small amount now each month can lead to substantial retirement rewards, even better when you are in a scheme where your employer matches your contribution.

As an example, if you invested £100 per month into a pension from the age of 20 for 40 years and the interest rate was 5% it would give you a pension of £152,602. However, if you didn’t start paying in until you were 30 it would only give you a pension of £83,226. This is just an example but it highlights the  positive impact time can make.

In simple terms the earlier you start a pension the more it will give you.


Look to the kind of lifestyle you may hope for when you retire and put a plan together. As you get natural pay rises through career progression you should increase your investment proportionally and ensure your contributions keep pace with inflation.


Pensions and retirement planning in your early years may seem a little daunting or of little importance but if left can become unmanageable.  The team here at Aspire can help you put your early investment priorities in to perspective and get you off to a manageable start.



Call us on 01928 735510 or send us an enquiry and we will call you back.