Is it Too Late to Start Saving for a Pension?


Most young people won’t give a moment’s notice to the thought of saving for retirement. Yet, all across the nation, young people are beginning to worry about their pensions. This is because newspapers are reporting, with increasing regularity, on the importance of starting a pension pot when you are in your 20s, rather than leaving it until later.

The Magic Number

In fact, experts advise that people who reach their 30s without saving for a pension will never be able to catch up to those people who started saving in their 20s, irrespective of how much the former put into their pots. Why? Because when it comes to saving for your pension, time is a more valuable measure than quantity. And when an individual finally reaches an age when they begin to realise they will be unable to work forever (which, as it happens, is 48), building a pension becomes an almost impossible dream.

Almost, but not quite. There are certain ways in which one can pull one’s retirement plan back from the brink by implementing a sound policy of fiscal intervention and reparation. That is, intervention into the way you manage your money and reparation with regard to the sorry state of your savings.

Getting Help

If you need a little help with sorting out your pension, you’ll be happy to hear the government only recently announced plans to make pension enrolment mandatory for all workers earning above £9,440, which should make retirement a little easier on those who haven’t paid into their own schemes. But there are other sources you can turn to for help with your pension that offer more immediate and focussed help, for people who want a little more bang for their buck in terms of holistic wealth management advice.

Don’t Give Up

The fact of the matter is that it’s never too late to start saving for a pension, no matter how old you are when you begin. This is simply because it’s better to have a small pension that no pension at all. But of course, you’ll want to know how to maximise your pension once you begin paying into it.

Many people struggle to save a pension because their money is earmarked for other things – rent, mortgage, groceries, savings etc. But if you do find that you have money for savings, these can be incorporated into your pension plan. Instead of using a middle-of-the-road savings account, choose a high interest ISA and split the difference. Put some money into your pension and keep the rest.

2 Responses to Is it Too Late to Start Saving for a Pension?

  1. I feel so depressed at times that it took me until 31 to start a pension! But I like to think that a pension in addition to the state pension is better than nothing!

  2. It’s never ever too late to start saving for retirement…anything you save will make retirement easier. It’s also a great idea to not just stuff money away, but to build sustainable income streams. If you have passive income streams (investments, business, rental property), then you don’t have to have as much saved in hard assets.

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