Pension Advice in your 20s and 30s
Start a pension early
Starting a pension is important for everyone; quite simply, the sooner you start a pension, the better. In previous generations individuals have been able to rely on generous final salary schemes and state pensions to pay for retirement. These are either not available or not at the levels previously offered.
In the past, individuals have tried to save for retirement through savings, investments or property portfolios. However, none of these offer the same tax advantages as a pension.
Anyone in their 20s or 30s is simply not going to have that level of income in retirement without regular pension contributions.
Will the state pension age increase again?
Under current state pension provision, anyone in their 20s will not be eligible for a state pension until at least age 68. No one is sure currently what age eligibility for the state pension will rise to by 2050.
Tax benefits of a pensions
Any UK resident will automatically benefit from tax relief on pension contributions. If you are a basic rate tax payer a £100 per month contribution will cost you £80 and for a higher rate taxpayer the net cost is £60.
By saving £100 per month into a pension from age 25 the fund will be approximately £200,000 at age 65 based on standard FSA projection rates of 7%.
Pensions have changed significantly over the last few years offering excellent online systems and wide range of fund options. This offers individuals the opportunity to monitor and even manage their pensions online to get the most from their pension investments.
Independent pension advice
Speak to one of our team today at Independent Financial Advisor to discuss the options of starting a pension and having total control of your future.
For more information on saving for a pension or retirement planning speak the independent pension advice team from one our partner firms for a no obligation consultation.
ABOUT TRUST ONLINE