For anyone thinking about how to accumulate some retirement income but finds themselves baffled as to where to start, fear not; you are not alone. 19% of Brits admit that they are saving nothing for their retirement and 66% fear financial hardship due to a lack of pension savings. But why is it that so many people do nothing or very little about saving for their future?
AEON believes the main reasons people do not pay into a pension are:
• Lack of knowledge and interest
• Lack of time
• Lack of money.
In a world where Google now features in the English Dictionary and receives approximately 1 billion search requests per day, there is no excuse for the first reason! Whilst searching the word ‘pension’ may bring up headlines full of doom and gloom, there are also some useful and helpful results. Failing that, book in to see an expert by ‘googling’ financial adviser. In terms of interest we all know that talking about money is boring but it’s far less boring than having no or little money in the future!
As for time, we all lack it. However the longer you procrastinate, the harder it will be to save sufficiently. You will have plenty of time once you are retired to reminisce as to why you didn’t set aside some time to plan your retirement when you had the opportunity to do so!
The last issue is money. How many people reading this article will be thinking, ‘I have no money to pay into a pension?’ The answer is probably quite a lot.
Now consider – how many of these same people smoke cigarettes, enjoy a few Starbucks coffees every week, or enjoy a few pints down the local every Friday?
If you can’t afford to save for a pension now how will you be able to afford those niceties in life once you are retired? The state pension will only give you an income of £7,488 – how many of us could live off that after paying council tax, gas, electricity, food and so on? The one bonus is that you may qualify for a free TV license!
So if you are tempted to consider saving for your retirement, what should you do?
The simple answer is to seek advice from a qualified financial adviser. One other bonus on the horizon is the introduction of auto enrolment. All employers will have to enroll the majority of their employees into a suitable pension scheme into which both the employer and the employee will make contributions. This will help many people get on the starting rung of that ladder. However, don’t be complacent. This contribution is unlikely to be sufficient for most people to enjoy a financially healthy retirement.
Contact us now for a free initial meeting and discussion. The only thing you stand to lose by doing this is your time but remember, you will have plenty of that in the future, but will you be able to enjoy it?