Sooner rather than later

Understandably, most 20-somethings are more concerned with building their career rather than ending it when they retire. But the very fact they are young will give them a massive edge if they want to have a comfortable retirement.


The younger you are, the sooner you should start your retirement planning because your money will have longer to grow.

Even a small monthly saving now can make a big difference to your financial freedom in the future. Delaying paying into a pension by ten years could reduce your eventual payout by nearly 50%.

Take this scenario: You start saving £75 a month at the age of 20 for your entire working life which produces a retirement income of around £17,000 per year. Start saving the same amount but delay it for 10 years and your annual pension would reduce to around £8,850. You don’t need to be a mathematician to work out the longer you delay saving the more your pension is reduced.


Starting saving when you’re younger doesn’t just mean you will be saving for longer, it also means you will earn interest on the interest, compounded interest, which makes a massive difference to the return on your total investments. The younger you start the easier it will be to maintain, saving will become a habit, something you just do.


The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.


For help with pension planning please call the team at Aspire on 01928 735510 or send us an enquiry and we will call you back.