When should I start saving for retirement?

Time is on your side

It's best to start saving towards your retirement as soon as it's conveniently possible. This is because you may need to pay in up to double to get the same pension income for every ten years you wait.

If you're in your 20s and 30s you’ve probably got so many priorities competing for your attention, that retirement may be the last thing on your mind. It may feel so far away that you can think about it later.

But, if you start saving for retirement in your 20s or 30s (even if it's a moderate amount), you'll have a great advantage over those who start later.

If you’re in your 20s or 30s, you’re likely to spend 20 years in retirement - or even longer.

Time allows your savings to compound

See the difference it can make when you start saving and investing early – even if you put in the same amount in total as someone who starts much later.

Here's how much difference it can make when you start saving and investing early – even if you put in the same amount in total as someone who starts much later.

David starts investing £100 a month when he is 25; Mike invests £200 a month from the age of 45, so they both save the same £48,000 by retirement...

Assuming a 5% annual return, the effect of compounding has longer to work on David’s investments, and so he ends up with almost twice as much as Mike.

Here's how much difference it can make when you start saving and investing early – even if you put in the same amount in total as someone who starts much later.

David starts investing £100 a month when he is 25; Mike invests £200 a month from the age of 45, so they both save the same £48,000 by retirement...

Assuming a 5% annual return, the effect of compounding has longer to work on David’s investments, and so he ends up with almost twice as much as Mike.

Benefits of a pension

Tax relief boost: For every £80 saved, the government provides £20 in tax relief, and you may get more back in your tax return.

What shall I do next?

Speak to us to see how we can help you:

  • Identify your current position

  • Establish your needs along with the timing

  • Build a plan to identify how much to need for the rest of your life

  • Implement your plan and review it regularly to ensure you are on target to achieve your life plan

Testimonials

Contact us to see how we can help you

Affiliates

Our services relate to certain investments whose prices are dependent on fluctuations in the financial markets beyond our control. Investments and the income from them may go down as well as up. Past performance is not a guide to future performance.

Scroll to Top