When should i start planning for retirement?

Posted on Sep 04, 2009 under Retirement Planning |

i don’t currently have a pension and i can’t really afford to save. i earn 24.5k a year. any advice?

If you cannot afford to save now what makes you think it’ll get any easier as you get older? The simple answer is that the earlier you start doing something about your retirement years, the less painful the journey. State Pensions and benefits aren’t going to become more generous and we must face up to the fact that we’ve got to do something about it ourselves. In the days when employees could join a firm, have a job for life and join the pension scheme you could expect to retire on around half your final salary (a fifty percent pay-cut on retirement). But the cost to you and the employer for this income in retirement would have been perhaps 12 – 15% of salary each year.

Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find and IFA please go to http://www.unbiased.co.uk

7 Responses to “When should i start planning for retirement?”

  1. I'm weird, ugly, and cute! Says:

    start now.
    References :

  2. Whiffles2 Says:

    when your 60.
    References :

  3. Medion Says:

    Many pensioners put money away for their retirement, but with the tax by Government and the downgrading of pensions by companies, a large shortfall was all they could look forward too. Having said that I think it wise to start a pension as soon as possible, perhaps in the future things will not be so bad and pensioners will not have to go to the Government with a begging bowl.
    References :

  4. winkie 692 Says:

    You should start paying in to a pension as early as you can , believe me , it soon creeps up on you and you will need to top up any state pension .
    References :

  5. Louise Says:

    The day you start full time work (i.e. after college). If you can get an employers pension, take the opportunity. It really is worth it. If you start putting in as soon as you are earning a decent wage, you won’t notice, as you won’t have got used to spending the larger income yet.

    Read this article http://www.lovemoney.com/news/saving-for-retirement/miss-years-pension-contributions-lose-76.aspx and go and start your pension today
    References :
    Motley Fool and Lovemoney websites.

  6. mark m Says:

    We don’t know how old are you? but any time now would be good, I have started my retirement plane when I was 28 years old, and it pays well now.
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  7. Unbiased.co.uk Find an IFA Says:

    If you cannot afford to save now what makes you think it’ll get any easier as you get older? The simple answer is that the earlier you start doing something about your retirement years, the less painful the journey. State Pensions and benefits aren’t going to become more generous and we must face up to the fact that we’ve got to do something about it ourselves. In the days when employees could join a firm, have a job for life and join the pension scheme you could expect to retire on around half your final salary (a fifty percent pay-cut on retirement). But the cost to you and the employer for this income in retirement would have been perhaps 12 – 15% of salary each year.

    Disclaimer:
    The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find and IFA please go to http://www.unbiased.co.uk
    References :
    Dennis Hall, Chartered Financial Planner, Yellowtail Financial Planning

    Dennis Hall is Managing Director and Chartered Financial Planner at Yellowtail Financial Planning. An award winning planner he has more than 25 years experience advising people about money matters. Yellowtail’s purpose is to free people from the worries of financial planning, allowing them to do more of what they want whilst Yellowtail come up with neat financial solutions.

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