Start Early
Because we’re living longer - Government estimates put future life
expectancy as high as 85 - it makes sense to maximise your pension, and
the earlier you start saving, the more money you’re likely to have.
Indeed, the money saved into a pension between the ages of 25 and 35 can account for up to half your overall pension pot. The main reason is the effect of compound interest, where the interest on money you save earns interest on itself over time. Start a pension at 25 and at 6% pa, £50 a month would provide £100,000 at retirement (age 65). Delay the start until the age of 35 and that same £50 per month produces just £50,000.
In This Issue
- Editor's Note
- Employee Focus
- Credit Fall Out
- Use It or Lose It
- Pensions & ISAs
- Did You Know?
- Start Early
- Are ISAs Tax Free