 Does the thought of how you'll cope once you retire send shivers down your spine? Or maybe even the word 'pension' feels so far away you haven't given it any brain space at all? Thinking about funding your old age when you are just starting out can feel rather daunting. In the early stages of your career you are likely to have many regular costs, from paying back student loans to saving for a home deposit. However, starting to pay into your pension as early as possible will make it far easier to build a retirement nest egg, with recent data showing that if you start paying into your pension at 25, you'll need to save four times less every month for a moderate retirement than you will if you start at 50. 'Small, regular contributions really mount up,' says Alice Guy, head of pensions and savings at Interactive Investor, the DIY investment platform behind the calculations. But even if it isn't possible to save while you are younger, there are steps you can take at every age to build up your pension pot – and take advantage of the government's generous tax breaks for those who save for their retirement. You may also want to find out how much state pension you will receive, to plan for your financial future. You can get a state pension forecast here. If it looks wrong you may be able to write in to correct any mistakes, using evidence such as payslips to show you have paid National Insurance. Whether retirement is months, years, or still decades away, here's our cash-savvy advice on making the most of your money before work is a distant memory. Under 18: The Bank of Mum and Dad We're not suggesting that children should be managing their own pension pots, but canny parents can give their offspring a head start by paying into a pension for them. Under the current rules, you can contribute up to £2,880 per year into a pension for a child, and the government will top up the con){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
Does the thought of how you’ll cope once you retire send shivers down your spine? Or maybe even the word ‘pension’ feels so far away you haven’t given it any brain space at all?
Thinking about funding your old age when you are just starting out can feel rather daunting. In the early stages of your career you are likely to have many regular costs, from paying back student loans to saving for a home deposit.
However, starting to pay into your pension as early as possible will make it far easier to build a retirement nest egg, with recent data showing that if you start paying into your pension at 25, you’ll need to save four times less every month for a moderate retirement than you will if you start at 50.
‘Small, regular contributions really mount up,’ says Alice Guy, head of pensions and savings at Interactive Investor, the DIY investment platform behind the calculations.