How to Start Saving for Your Pension
Planning for your future is one of the most important things you can do throughout your working life. However, it is something that people tend to put off.
Retirement can seem like a distant future compared to our busy everyday lives, making it fall to the bottom of our to-do lists. With most of us dealing with ‘right now’ finances, such as paying off student debts, paying bills or buying your first home – it is understandable that pension planning is the least of your worries.
By 2018 all employers must provide a workplace pension scheme, this is called Auto Enrolment.
Where do I start?
The most important thing to do is simply start contributing to a pension pot; this can be as small or large as you wish. (You can contribute the lesser of £40,000 per annum or 100% of your salary). If you don’t have a salary, you are limited to £3,600 per annum. The sooner you start to make your contributions the longer your money has to grow. Once set up, younger people need not waste their efforts on managing it, as risk graded funds are designed to take away the hassle of stock selection.
One of the easiest ways to contribute to your pension is by joining your company’s pension scheme. Workplace pensions are arranged by your employer, and a percentage of your pay is paid into the pension scheme automatically every payday. In most cases, your employer also contributes the same amount into your pension pot for you.
How ES Walton can help you
At ES Walton our core service is based on helping you get what you want out of life and helping you to get there. We can work with you to identify what your income is likely to be when you get to retirement and how much money you’ll need to live on. We do this through cash flow planning, by creating scenarios to gather your plans and adapting them with real life events before, during and after they happen. This allows you to visualise and build your financial future.
It’s important to remember when it comes to pension planning; the sooner the better however, it is never too late.
Speak to one of our advisers today to start making a difference to your future.Contact Us