Have you started saving for retirement yet?
Saving for retirement is something we should all do, but not something that we all focus on. Whether you are not a fan of planning or forget to manage your money for the future, it’s easy to forget about your retirement savings altogether.
A common question people ask is, “When is the right time to start saving?” Often, retirement feels so far away, and many younger adults think there is no point in squirrelling cash away while in their early twenties. But should you be saving while young?
In this blog, we are exploring when to start planning your financial future and how you can get started as early as possible. Scroll down to learn more.
Experts recommend you start saving for retirement as soon as you start earning, which means in your early twenties — if possible. The earlier you start, the more time and flexibility you have to earn and invest wisely, leaving you with more money when you stop working.
However, if you didn’t save any extra cash while young, don’t worry. You can become a retirement planner at any age.
Many financial guides use ages as milestones to show how much you should have saved by a certain point. These should be taken with a pinch of salt. Everybody is on their own financial journey, and one person’s savings account will always look different to yours.
That said, don’t take this as a sign to put off saving. If you have the means, start slowly investing money into a retirement account or another savings tool as soon as possible.
The best retirement savings are slowly built up over the years. But how much should you be adding per month?
A common suggestion is to save 15% of your annual income every year — including any employer contributions. Using this figure allows you to save without restricting your budget too much. This saving technique will allow you to save a year and a half’s income in ten years, assuming your salary stays the same.
Starting your savings journey now? Here are some other essential factors to consider.
Saving for retirement can be daunting, especially if you don’t have general future plans. Don’t allow your anxieties to put you off though. Starting your savings earlier is always the best option, especially if you are older.
Find our complete guide to saving for retirement in the UK here to take the next step in your savings journey.
Check out our other great content in our Info Hub, with articles about the different types of credit products, money management tips and help with saving money!