A financial advisor will probably tell you that you are never too young to start thinking about your retirement and they would be right. However, when you have youth on your side and photos from your teenage years are still plastered all over Facebook, it probably feels like you are going to be young forever and old age is never going to happen. Well I hate to break it to you, but we all get old someday and unless you fancy living like a pauper when old age creeps up on you, planning for your eventual retirement is a good idea.
Live Fast Die Young
It worked for James Dean, but it might not work for you (unless you have a passion for fast motorbikes or other dangerous lifestyle choices). Thankfully we don’t go through life with a sure and certain knowledge of when our time is up. For most of us, the end comes at the end of a long and reasonably happy life, and if all goes well, we get the opportunity to enjoy a comfortable retirement first.
Do I Need Money for My Retirement
It is possible to retire with no savings or pension plan in place, but if that happens, your options for enjoying the twilight years are a lot more limited. Basically, the more money you have when you retire, the nicer life will be. Think of it as the difference between shopping at Nettos and Marks & Spencers Food Hall. On the surface, they sell similar things, but given a choice, wouldn’t you rather be eating a meal from M&S than the bargain bin at Nettos?
When Should I Start Saving for My Retirement?
When it comes to planning for retirement, the earlier you can start squirreling money away into a pension pot, the better. The longer your money can start working hard for you, the more you will have to play with when you finally retire. Indeed, it may even be possible to take early retirement if you have made provisions from a young age, which could be just the ticket if you suffer from ill health later in life.
I Want to Travel the World When I Retire
All the more reason to start planning ahead then! Check out pension reviews and find out how much you need to be saving on a monthly basis to provide you with the kind of income you will need to enjoy a comfortable life. And if you envisage travelling the world in 5* luxury with an entourage in tow, you better start buying a weekly lottery ticket as well.
Every Little Helps
Not everyone can afford to pay into a personal pension fund at a young age because unless you are lucky enough to have a great job, you probably won’t be earning enough. But if you are able to join a company pension scheme, it will be worth your while as your employer will top up your contributions.
How Do I Find the Right Pension Plan?
Pension reviews can help you make a decision, but if you need personal advice, it will be worth making an appointment with a financial advisor. Independent financial advisors have access to hundreds of different pension products and will be able to help you make the right choice. They will also be able to give you useful advice on other financial products if applicable.
We are in a Recession So Isn’t a Pension a Waste of Time?
It is certainly fair to say that many pension plans are not paying out as much as they would have done ten years ago, but unless you are close to retirement, this should not be an issue right now. The financial markets chop and change fairly often, so in thirty years or more, the situation will be completely different.