Are you considering saving for retirement but haven’t quite got around to it yet?

It’s never too early to start. In fact, starting to save for your pension at the age of 20 instead of 30 can make a significant difference in the amount of money available to you in retirement.
These 10 extra years can double your pension pot at retirement! Sounds incredible… here is the formula

By starting your pension by investing £100 per month and thereafter increasing your contribution by £100 every 5 years, with a lifetime cap of £700 pm as from age 50, and assuming an annual return of 8% (6.5% net of fees) on a high-risk portfolio, a 20-year-old will have approximately £963,945 by the time they reach retirement age at 65. On the other hand, someone who starts saving for an equivalent pension at age 30 will have approximately £449,207 by the time they reach retirement age at 65. That’s a difference of £514,738!

Exposing your pension contributions to an investment environment for those additional ten years will provide your funds with the long-term benefits of compound interest and pound cost averaging. Taking a long-term perspective will help you ride out the highs and lows of the stock market, help you take the emotion out of investing, and make market volatility more acceptable. While high-risk portfolios carry more volatility, they also have the potential to generate higher returns in the long term and the extra ten years can help you feel more comfortable with this concept. There’s merit in adopting a passive investment strategy and patiently waiting for that potential long-term performance. It’s important to consult a financial adviser and consider your risk tolerance, financial goals, and overall investment strategy before making any decisions, or opting for our ready-made model portfolios.

Don’t wait any longer, start planning for your future today and secure a comfortable retirement. Even if you are no longer in your twenties, take action now! You can see the big impact an extra 10 years make, at whatever age.

Click below to learn more!

This advertisement does not constitute investment advice. As with all investments, your capital is at risk and you should always seek professional advice in regard to the suitability of any investment. Abacus Pension Trustees Limited is authorised by the Financial Services Commission permission number 1275B….(read more)

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Pensions are a crucial aspect of financial planning, and it is essential to have a well-defined strategy in place to ensure a secure post-retirement life. In this regard, Abacus – a pension provider in the UK – has recently launched a campaign called ’20vs30 Pension.’ The campaign highlights the importance of starting pension contributions earlier in life.

The premise of the campaign is simple – the earlier you start contributing to your pension plan, the more time your investments have to grow. Abacus emphasizes that people who begin contributing to their pensions as early as their twenties will have a significantly higher pension pot than those who start in their thirties.

The Abacus 20vs30 Pension campaign focuses on five key messages:

1. Starting pension contributions early means greater returns.
2. The pension pot that you build through early contributions can grow to potentially £5,000 per year more than if you started saving in your 30s.
3. Investing earlier gives compound interest more time to work its magic.
4. Saving into pensions can complement other forms of saving and investing.
5. An Abacus pension allows you to have a flexible and fully integrated pension plan that adapts to your needs over time.

The campaign also includes a comparison chart that shows the difference in the final pension pot at retirement age 65, between someone who started saving at age 25 and someone who started saving at age 35. The chart shows that the person who started saving at 25 could potentially have a pension pot worth over £230,000 more than the person who started saving at 35.

Abacus hopes that people will take away two key messages from the campaign. Firstly, that it is important to start contributing to your pension plan as early as possible in your career. Secondly, that it is essential to have a pension plan that is flexible and adapts to your changing financial needs.

The Abacus 20vs30 Pension campaign highlights a crucial aspect of financial planning that often goes overlooked. Starting pension contributions early can make a significant difference in securing a financially sound retirement. Every penny that you put into your pension plan today could potentially earn you pounds in the future. So don’t delay, start contributing to your pension plan today, and secure a comfortable retirement for yourself.