PENSION PLANNING TIPS FOR 20– AND 30–YEAR OLDS.
Regardless of the decade, we have prepared for you a guide to ensure your retirement lifestyle is one of comfort, ease and financial security. Having enough income for basic day–to–day living is a necessity for all and some retirees find it a challenge.
Failing to plan for your retirement can have severe implications for not only you, but also your own family. Living off a limited expenditure from one week to the next is not exactly a desirable lifestyle.
Let’s face it life expectancy has been increasing and if we are going to be around a lot longer, then we need to plan to provide enough money for the future. Lucky for you we have pension planning experts with almost 40 years’ experience to help you plan for a richer retirement.
20 years in the making …
At this stage in life most of us have graduated from University and are beginning our adult adventure. Our main priority is getting our foot on the career ladder and earning a proper salary. However, there are certain things which must not be forgotten about when it comes to pension planning!
Tip 1 – Save Within Your Means
We may have begun earning our first proper salary, but early graduate positions are not overly well paid. So once the bills have been deducted from your wage, then save what you can afford; leaving yourself with enough to cover the remainder of the month. Although there are more pressing matters at hand and much more exciting things to spend your money on, starting to save is a healthy trait and one to be sustained!
Tip 2 – Employer Contributions
Although the main priority at stake is clearing your debt, if your current employer offers contributions to your workplace pensions, then it would be rude not to take them up on that generous offering!
The amount an employer contributes to workplace pension tends to vary. Ultimately depending upon the amount paid in by you, your employer and tax relief from the government. These elements are usually calculated as an amount of your earnings.
Tip 3 – Open an ISA
Although we are frantically trying to pay off student finance loans, overdrafts and credit cards, whilst feeding our social agenda; it is important to try and put some money away.
It might seem difficult at first, however by opening an ISA you can send a small amount to this account on the 1st of every month, or as close to payday as possible so that you won’t even notice it’s gone!!