When Should You Start a Pension?

By March 20, 2017Chelmsford, Essex
When Should You Start a Pension?

It is good practice to start paying into a pension as soon as you begin working in full time employment and start earning to ensure you have the maximum amount of time to build your pension pot. The introduction of the auto-enrolment pensions has helped younger people to start thinking about pensions at a younger age and is making us more aware of our retirement years and is helping to encourage retirement planning.

Starting a pension younger will not only provide you with a more comfortable income in your retirement years, it could also open up the possibility of being able to take early retirement. Whereas people who do not start a pension until later in life, may not have sufficient time to build a significant pension pot and could risk not being able to retire until much later in life.

If you want to start building your pension pot but are unsure of or have questions about the different types of pensions and which one is the best one for you, we recommend seeking advice from an independent financial adviser to ensure you are making a wise choice and one that will be beneficial for you in later life.

If you are looking for independent pension advice in Chelmsford and the surrounding areas, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement.

Is It Ever Too Late to Start a Pension?

It is important to start your saving into your pension pot as early as possible, although retirement may seem a long way away and you may qualify for the State Pension – it is not guaranteed that the State Pension rules will be the same as now in 20 years’ time and in many cases the State Pension does not provide an adequate income to live comfortably.

That said, if you have left it until later in life to start your pension pot all is not lost. While you will have less time to build your pension pot, you could still manage to build a sufficient amount to provide you with an adequate income in retirement and depending on your pension scheme you may be able to increase your contributions to boost your pot.

It is always best to seeking independent financial advice before making any decisions about your pension to ensure you are making an informed decision that is appropriate for your personal circumstances and one that meets your financial objectives.

While a pension is a great way to secure financial security for your future, it is imperative that you do not overstretch your finances. A financial adviser can work with you to determine how much you can comfortably afford to contribute to your pension pot to ensure you are left with enough money to live a comfortable life and also maintain a rainy day fund for emergency financial situations.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Chelmsford and across Essex.

At Pensionsadvice.org we can help you find a registered financial adviser for pension advice in Chelmsford and across Essex. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

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