No, it’s never too early to start saving for retirement. The advice from many financial advisors is that as soon as you start earning then you need to start saving for retirement, but why is this so important?
The earlier you start saving then the more you will have in your retirement pot – especially if your expecting a low salary or your budgets are limited as the later you start then the more catching up you will need to do.
According to research from Money Saving Expert only 5% of 18-24 years regularly save but that’s generally the best time to save – often because during this age group we don’t have mortgages for have lot of dependents so the more we can start in these early adulthood years then the less the burden we have later on.
But do you really need to take out a pension?
Pensions can offer tax relief and as you can’t access it until your retirement it does stop you from being tempted to dip into your savings should you need to but there are other ways you can save.
However you decide to save for your pension or for later on in life the best advice we can give is to start as early as you can, lock it away in an account that you can’t access, pay of your debts and set your goal so you know how much you will need when you’re older and not likely to earn quite as much.
There are options for you to save at Wave Community Bank and you can place restrictions on your savings so that you can only access it when you’re later. You can look more into our savings accounts here and by saving with your local credit union you are also helping to support your local community.
