30s/40s life stage

Why bother about retirement when you are young and have lots of other things to worry about, like progressing your career and income, starting on the property ladder, and possibly thinking about having a family?

Fair enough, retirement is a long way off so it would be silly to suggest that this should be your no 1 priority at this stage in your life.  But precisely because it is such a long way off, small actions taken now can make a huge difference to how things pan out over the long term.  All it needs is a small amount of attention.

Here is sample of some of the things you can be doing at this stage:

  • If you are offered a chance to join a company pension scheme, take it.  If your employer makes contributions, by not joining you are effectively giving up the chance to get free money in your pension.  Even if your employer doesn’t contribute, a company pension scheme is usually an efficient way to start on a pension – and it gets you into the habit painlessly.
  • If you don’t have a company scheme, get into the habit yourself.  No need to go overboard at first, just start.  One good idea is that if you get a pay increase or bonus, you can put a proportion of this into your pension (which attracts tax relief) and enjoy the rest.
  • When you change jobs, think about pensions as well salary.  If you give up a generous pension by moving, you could be worse off even if you get a higher salary.
  • Keep tabs of all the pensions you accumulate over your career so things are easier to consolidate when you do get closer to retirement.

By all means, focus on life’s current priorities – but just take a little time to focus on the implications for your future retirement and pension.  Every extra £1 invested in a pension at a young age has much more buying power than later on, so every decision to invest early creates “free” pension later on.

The book covers all the above in much more detail: also look out for relevant articles as they are published and think about registering and downloading our action plan.

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