Starting a Pension

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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 provide 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.

How do I start a pension?

• Start a pension from as little as £1 a week with Virgin Personal Pensions >>