It’s common for most youngsters to feel shocked when asked to think about retirement. Once they complete their graduation and find a good job, they usually feel that life’s responsibilities are over. While it may seem strange to think of your retirement during your twenties or even thirties, you can enjoy the prospect of saving up for the proverbial rainy day.
But this is far from the truth. With escalating costs of living and inflation here to stay, it’s never too late to save for your retirement. We would all love to enjoy our lives with the same comfort during retirement as we did during our active working life.
If you start young, you have age on your side and have more number of years to save a healthy pension without squeezing yourself in the process. You can use online pension calculators in order to determine how much you want to invest each month. You can choose to save through your employer’s pension scheme or through personal pension schemes.
Here are some important reasons why it’s important to begin saving for your retirement as early as possible:
Longevity has increased
The good news is that thanks to healthy nutrition and medical advancements, people live longer. So your retired years may be much longer than you had envisaged. Since you will not be working after retirement, your money has to last through those years.
Saving early gives your money time to grow
The earlier you begin a savings plan, the more time your money has in order to grow. Time is a very valuable tool when you save money for retirement.
You have added protection from recessions and economic downturns
Even in the event of job redundancy, you have a head-start because you already have a growing pension account.
You can diversify your pension savings
Once you have a decent saving squirreled away for retirement, you can now think of investing your savings in different ways. You can even compare the different pension schemes available in the UK before making a decision.
It’s never too early to begin retirement savings. Putting off making your pension arrangements could result in you missing out!
Deia @ Nomad Wallet says
This is so true! With pension funds becoming less and less stable, people should expect to take care of themselves when they retire. And starting young is the way to go.
Pinching Pennies says
Exactly! Thank you for visiting!