Retirement might seem a long way off, but you’re never too young to start saving into a pension.
Here are just a few reasons why…
The power of your pension grows over time
If you start saving early, your pension has more time and potential to grow, so it will be worth much more in the future.
No other savings option gives you so much for so little.
Pensions should be part of a wider savings plan
Taking money out of your pension can affect its long-term value, and you can only take 25 per cent of your pension savings out of your pension tax-free, with the remaining 75 per cent being taxable as income.
With this in mind, it’s really important that your pension forms part of a wider savings plan.
You could, for example:
- Join your workplace pension scheme
- Put money into a savings account
- Set up various investments
That gives you the best of both worlds – confidence that you’re building a healthy pot of money for the future and the ability to make your money work hard for you right now.
It’s never too late to get started with pension saving, but the earlier you do, the better.
You don’t have to lift a finger to get started, as your employer and Creative Pension Trust can take care of everything for you.