Whether you're 20-something or have a few more years to account for, pension planning can seem a bit daunting.
However, younger people in particular often feel as though a comfortable retirement is out of their reach.
According to the Scottish Widows' Retirement Report 2019, almost half a million under-30s are saving for the first time in the last two years, with 40% of 22-29 year-olds now saving adequately, largely due to auto-enrolment (AE).
But there is still a lot to be desired when it comes to pension planning and the younger generation.
Could you be under-saving?
The figures also show that three in five young people are saving below
the recommended level for a comfortable retirement, with 14% of 22-29 year-olds not saving anything
When you're confronted with life spends -- buying a property or paying rent, bills, fixes to your home, more bills, keeping your car in check -- you may not give your retirement much thought. It's ages away, right?
However, it doesn't hurt to think about your pension sooner rather than later (in fact, it feels great!) and the earlier you start saving, the better.
Make a change today
When you're a member of a secure and sustainable pension scheme like the Fund, a comfortable retirement is achievable.
Here are some things to consider when working and saving towards a comfortable retirement:
- The younger you start to save, the more money you could have in retirement (think of it as replacing your annual income once you stop working)
- Small payments, little and often, can make a big difference
- Consider AVCs if you can afford to put away a bit more
- Check your pension savings regularly by logging into your online myFund account, just like you do with online banking
- Planning for the future can be fun!
The BTP website has plenty of information, guides, videos, and other resources to help you learn more about your pension and benefits -- so start your retirement planning today. The information in this article should not be regarded as financial advice. You can speak to an independent financial adviser (IFA) about making pension contributions -- find IFAs in your local area on the Unbiased website.