Starting a Pension
It is now more important than ever to start planning and saving
early for your retirement.
According to the Pensions Policy Institute, life expectancy has
risen significantly over the past 20 years.
For example, a woman who turned 65 in 2005 is now expected to
live to the age of 87, while the average 70 year man is likely to
live past 84.
Its research also indicates that this trend shows no signs of
slowing down, with today’s 37 year-olds (those who will turn 65 in
2035) forecast to live to 87 (men) and 90 (women).
However, a longer lifespan means a long and costly retirement,
which is why it is important to start saving for retirement
early.
Minimal State Pension
As people are living longer, the knock on effect on the State
pension is that is will not be able to sustain those who are
looking to rely on it. At the moment it just about covers the
basics with little or no room for luxuries, and with a growing
older population it is likely to continue to be worth less in real
terms.
Company Pensions
Employers have also changed the way they support pensioners.
Most companies used to offer generous pensions to their staff back
when a typical employee spent most of their career at one firm. But
with the typical employee now likely to spend their career working
for several different companies, many employers have decided to cut
back on their pension offerings.
Everyone is now going to have to start thinking for themselves
and taking more personal responsibility when it comes to saving for
retirement. You can no longer leave it to someone else.
To improve your chances of a wealthy retirement it is important
you start putting money aside as early as possible and give your
savings sufficient time to grow.
