It’s true that the earlier you start your pension, the better. You have the benefit of time on your side and a regular amount saved every month can accumulate to a significant sum of money by the time you reach retirement. Whatever you see yourself doing it is important to consider what your goals are and how you are going to achieve them prior to retirement itself. Remember it is never too late to start planning and every bit you put aside puts you closer to achieving the type of retirement that you aspire to.
When you contribute to a pension, the net cost or the ‘real’ cost to you isn’t as high as you would initially think. The Government provides generous tax relief on earned income to encourage pension saving.
If you have started saving for your retirement, when was the last time you reviewed your monthly payment? If you haven’t made any plans yet for your retirement then make a plan today to get down to it.
If you are employed then you might start with your employer to see if there is a pension plan in place for employees of your company. If there is, then it’s possible that your employer may make payments to the pension in addition to any payments that you make personally, which will increase the value of your fund over time.
If your employer doesn’t have a pension scheme in place or you are self-employed, there are a number of options available to you and a financial advisor can take you through those options and select a plan and a level of monthly payment that’s right for you.