I’m too young to think about retiring.
It’s never too early to plan for your future. You may think that you can put off retirement planning until your 40s or 50s, but the sooner you start saving the greater your pension income is likely to be.
The cost of delay can be quite significant. For example, if you wanted a retirement income of £12,000 a year, approximately half the national average earnings for a man in the UK, starting at age 65 you would need to save the following amounts each month, depending when you started saving.
As you can see, the longer you wait the more it costs. And as no-one knows what the future holds, your future financial commitments may make it hard for you to put away the extra amount needed.
These figures are only illustrative and are based on a male investing in a Pension Policy. They assume investment growth of 7% a year and a management charge of 1% of the plan value each year. Inflation will reduce what £12,000 a year can buy in the future.