In the UK there’s always a lot of concern about young people not having the foresight to save enough money for their retirement. Many people aren’t motivated to save during their younger years, and as a result they can then encounter financial difficulties in their later years due to the ever rising costs of care homes for the elderly in the UK.
We have come up with some reasons why young people should adopt different attitudes towards saving early and planning for their retirement years, and why it’s a good idea for young professionals to start thinking about their finances in retirement.
It Pays to Save: The Benefits of Contributing to Your Pension from a Young Age
You are able to accumulatively save a far higher amount money by contributing to your pension plan from a younger age. An individual contributing to a pension plan out of their monthly earnings since the age of 21 for example should be able to save a lot more money for retirement than if they had started contributing to the same plan at 35 years old.
Of course, when you are young it’s great to enjoy yourself by going out socialising, buying nice things, traveling, going on holidays and so on, but it’s also crucial to save and keep your future in mind. Young people should be mindful of the fact that it pays to save when it comes to pension planning, and a small contribution over time could make a huge difference to your quality of life in later years.
Young professionals interested in receiving professional support on pension planning and financial advice in general should have a little look at Pinnacle Wealth Management.
Pension Planning Shouldn’t Burn a Big Hole in Your Pocket
Contributing to a well-structured and organised bespoke pension plan certainly should not bite into your salary intake and the money you take home too much. You should still have enough left over to spend on the things you enjoy after contributing to your pension fund. So, don’t be put off investing in pension planning due to the cost of the contributions.
Healthy Pensions Can Help You to Look After Yourself and Your Loved Ones
Consider pension planning as a way of future-proofing your personal finances so that you have enough money to look after yourself and your close ones in later life. Should you or a family member become ill in the future and suddenly require expensive care, having a healthy pension plan will mean you have the financial means to help out and cover all or some of the costs.
Not Contributing to Your Pension from a Young Age May Be a Decision You Regret
Like any decision we make in life, you may regret not deciding to contribute to your pension plan from a younger age. Particularly if doing so would have meant you would have had enough money to be able to fund important medical care in later years, for yourself or your family members.
In addition, you may want to spend your senior years abroad soaking up the sun and buy a property overseas. A secure pension plan that you have contributed to for years will mean you are more likely to be able to afford to buy a property in retirement.
So, young people pay attention and start contributing to your pension to ensure you have enough savings aside for your retirement years.