We spend the majority of our adult lives working hard. That’s why, when we can finally retire, we want to enjoy our autumnal years in style.
But with the cost of living continuing to rise, many young professionals fear that day will never come. After all, the age of retirement is creeping up as fast as the cost of our groceries. It seems that it is becoming an aspiration for many twenty-something’s, and one that is practically unreachable.
Start Saving Today
The truth is, taking early retirement is becoming more difficult. But a lot of it is our own fault.
We lead increasingly busy lives. Everyday expenses are becoming more expensive. Putting a little – or a lot – aside each moth just doesn’t seem to be a priority for many young business people. Especially when nights out and impulse purchases are much more exciting.
However, twenty-something’s can still enjoy the perks of their new income, and still get ahead. Here, we look at why – and how – you can start saving for retirement today:
1. The Early Bird Catches the Worm
The earlier you start saving, the bigger your pension pot. It really is as simple as that.
By joining your corporate pension scheme or starting a savings account in your twenties, you can put a little away every month. If you’re feeling strapped for cash, this is a much better alternative to investing a huge chunk of your paycheque when you hit forty.
Early savers will also benefit from increase interest and increased employer contributions. If your company matches your pension contributions, you should take advantage of this right away. Even if you don’t intend to remain employed in one place (as many twenty-year-olds don’t), you can still reap the benefits of these contributions if you can.
In the UK, retirees are entitled to a state pension. This however, may not be enough. Starting saving as early as you can means that you increase your chances of living comfortably when you reach retirement age.
2. Improved Financial Security
Whether you’re twenty or fifty, financial security is important. Unfortunately, the unstable economy means that this is a privilege many people can’t say they have. Kill two proverbial birds with one stone, by saving money for retirement and keeping it in a secure account.
For UK savers, consistent payments into a savings account such as a pension or ISA can help give your credit rating a little boost. More than that, it gives you peace of mind. Peace of mind that, should anything happen – such as losing your job – this pension pot can act as a buffer and help you out.
3. Enjoy Retirement in Luxury
The global economic downturn has meant that thousands of people have been forced to delay retirement. Instead of leaving work and enjoying their autumn years at 60, many are working well into their 70’s.
If you want to get out there and enjoy your retirement in luxury, you need to start saving in your twenties. This will enable you to really enjoy every day of your retirement, and do all those things you always said you wanted to.
More than this though, you need to have enough money aside for those proverbial rainy days. You may fall ill and need residential care. Should this happen, you want to be financially sound and able to afford the best possible care for your needs.
Whether you job-hop right up until your 65th birthday, or carve out a career with one employer; you should start saving right away. Saving for retirement in your twenties means that you can enjoy the days of freedom ahead of you.
