When To Start Pension


When should I start my pension?

 
Longer life expectancy, falling interest rates, volatile stock market returns and diminishing annuity rates are causing growing concern for people looking forward to a comfortable pension income.
 
Quite simply many people need to increase their pension contributions to ensure that they will have enough to live on!
For someone in their mid-30s they should be setting aside around 20% of their income to get a pension worth around 60% of their final salary. For someone aged 40, the figure raises to 25%, and for those who are 45 when they first take out a pension, they need to save 30% of their annual income. 
 
The earlier you start the bigger your pot will be. When you invest money you earn interest or income on your capital. Then next year you earn on both your original capital and the interest from the first year, and so on. Compounding is a simple concept, the snowball effect on your capital becomes bigger and bigger each year, the earlier you start investing, the more time you have for compounding to take effect.
 
If you want an enjoyable retirement, it is important to start saving asp - governments provide only minimal help in retirement and this is only going to get worse as many of today's pensioners have discovered.
 
Final salary schemes have been seen as comfortable ways of saving for old age since they are supposed to guarantee a set income based on two factors, number of years service and the final salary, however some companies may not be able to afford to pay out their liabilities in the future, indeed some schemes have gone under causing long term hardship for those in the scheme.
 
One of the golden rules of personal finance is to diversify investments and spread risk, so it may be worth looking at other ways of saving.
One way is to use Oyster Bay Platform, there is no tax relief but you can invest when you wish, where you wish and can take monies out with zero restrictions. You can start with Oyster Bay from just 10,000usd or equivalent and can top up at anytime
 
Start now, make your cash work for you, check your current account interest rates ,many  people are unaware how low these rates have become,this cash could be used to enhance their retirement pot.
 

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