I Have A Money Box, Why Do I Need Someone Else To Look After My Money?

I Can Save All On My Own

Financial freedom usually comes at a price. Indeed, for the majority of the population, financial freedom is often equated with freedom from debt. Debt is at crisis levels, yet we still continue to save for short term goals like vacations or a new TV for the home. When you decide to start saving again, it should ideally be for the long term. This saving for your retirement is known as a pension. You’ve undoubtedly heard your grandparents talk about collecting their pension at the local post office every week. Although they still exist, 30 years from now, private pensions will inevitably be the only course of action for a retirement fund.

I’m Far Too Young To Worry About Pensions

Whether it’s your first time entering the world of pensions or not, there may come a time when you may actually realize that you could actually “get more for your buck.” Pensions are becoming increasingly important for our futures and this is as true for those who are taking their first financial steps in life as it is for anyone else. There is no right or wrong way of starting a pension. Likewise, there is no right or wrong age to start a pension either. We all aspire to retire at an early age, but as the economy falls on hard times, we can clearly see the older demographic working until they are older, sometimes as much as 20 years longer.

According to The Pension Bureau, Young people appear to have many preconceptions about pensions. One of these preconceptions is that they look at their own pension as less disposable income out of the pay packet, which they could have had in their back pocket when they needed it the most have an undesirable need to think about their later life.

I’ll Worry About My Future When It’s Time To

The young are clearly in the dark when it comes to pensions. This may be because there are possible indications that they have a lack of available information and awareness. Young working people actually contribute to helping the economy as they tend to be high spenders. As a nation, we do like to shop around. Getting the best deal for your pension is no different in that regard.

Retirement? – I May Not Retire

The younger generation can of course benefit from a secure financial future. It is estimated that 1 in 4 people don’t have a pension and 1.4 million people are within a decade of retiring. You might think that this sounds complicated but there really is no need for you to be daunted. Pensions have been designed to be attuned to the needs of different demographics. A good starting point is the “magic number” game. If you want to retire at 65 then divide your age by 2.  Let’s say you’re 30 years old. 30 divided by 2 equals 15.  This means you need to save 15% of your monthly income. 15% of $1,500 is $225. The government rewards pension savers. To take a snip at the estimated $35 billion government bill given to pension savers, by putting $1,000 in the pot, you could see a healthy sum of $250. As it stands, every $10 a 30 year old pays into a pension can see a return of 3 times that amount by the time they retire.

I’ll Invest My Money Instead

According to the IFS, it is estimated that young workers could get far less when entering a state pension if plans to introduce a single-tier state pension comes to fruition in 2016. So while the government exercises pension cutting schemes, it is never too early to start planning for a financially rewarding future.

If you are looking to set up your pension for the first time or would like to compare your current pension, Pension Bureau is here for you with every pension provider at your fingertips.

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