Why starting your pension early is so valuable

When it comes to preparing for the future, starting your pension early is one of the most important steps you can take. While it might not feel pressing in your 20s or 30s, the earlier you start, the more opportunities you have to build a stronger retirement fund. At Creative Pension Trust, we understand the value of getting started early and are here to help you make the most of it.

The Power of Compound Growth

Starting your pension contributions early means giving your money more time to grow. Compound growth allows you to earn returns not just on your contributions, but on the returns those contributions generate over time. It’s a snowball effect that can transform modest savings into a significant retirement pot.

For instance, if you invest £200 a month starting at 25, with an average annual return of 5%, you could accumulate over £160,000 by 55. Wait until 35, and that same monthly contribution would grow to just £89,000. That’s the difference time can make, and we’re here to ensure you can make it count.

Flexibility Without Financial Pressure

Getting started early also means you can contribute smaller amounts over a longer period, easing financial pressure later in life. Life comes with its share of expenses—mortgages, childcare, and other responsibilities—but consistent, smaller contributions from the outset can provide a secure foundation without overwhelming your budget.

You can use the Creative Pension Trust Member Portal to check how much you’re paying into your pension each time you get paid. If you want to change them, just contact your HR or Payroll team.

Maximise Employer Contributions

If you’re in a workplace pension scheme, starting early means you’ll benefit from employer contributions over a longer period. Many employers match a percentage of your contributions, effectively boosting your savings with no extra effort.

For example, if your employer matches 5% of your salary and you earn £30,000 a year, that’s an additional £1,500 annually added to your pension. Over time, this can have a substantial impact.

Mitigating Future Uncertainties

Building a pension early also means preparing for life’s uncertainties. From inflation to market fluctuations, the earlier you start, the more time you have to adapt and recover. It’s about creating a financial buffer that provides stability, no matter what life throws your way.

At Creative Pension Trust, we provide our members with tools and resources to navigate these challenges, including our carefully selected investment options and ongoing member support.

Building Financial Confidence

Taking those first steps towards your pension builds financial confidence and encourages good habits. Knowing you’ve started early allows you to focus on your goals, secure in the knowledge that your future is in good hands.

We aim to make your pension journey as straightforward as possible, with features like the Creative Pension Trust Member Portal, where you can effortlessly track your progress, trace old pensions you may have lost, and make a financial plan for the future.

How to Get Started

Starting your pension doesn’t have to be daunting. Here’s how you can take that first step:

Review your workplace pension scheme: Check your contributions and employer match. Adjust them if you can—every little bit helps.
Explore your investment options: Creative Pension Trust offers diverse funds, including sustainable choices that align with your values.
Use our Creative Pension Trust Member Portal: Manage your pension, track contributions, and plan ahead—all in one place.
Refer to our scheme guides: Find answers to common questions about your pension options.
Visit MoneyHelper: For guidance on workplace pensions.

Starting your pension early is one of the best investments you can make for yourself. With the power of compound growth, employer contributions, and our member-focused support, you can build a more secure future today.

Visit the Creative Pension Trust Member Portal to manage your workplace pension and take control of your financial future.

Why starting your pension early is so valuable