Pension schemes and saving for the future

 Pensions advice for young people

A pension is a tax-efficient way to save for your retirement. This means, money that would have been paid to the Government, goes into your savings pot instead. Even better, when you start work, your employer will also likely contribute.

Many companies will match your contributions up to a certain amount. So, for example, if you contribute 5% then your employer may also contribute 5%.

Assuming you earn a salary of £20,000 per year, that’s a whopping £2,000 into your pension pot. Using this example, if you didn’t contribute to your pension, you would be giving up £1,200 per year in free money.

The sooner you save for the future, the earlier you will be able to stop working. You could be eligible for a state pension in your late 60’s, but this is currently only around £8,500 per year. You’re free to work for as long as you like, but it would be nice to put your feet up at some point.

When looking for a job, it’s important you understand all the benefits on offer. On top of your salary, your employer could offer many other perks that would help with support a decent standard of living.

We understand that young people have other financial commitments (like saving for a house, or going out with friends). However, try to remember that the earlier you save, even a small amount, will go a long way to securing a better future.

Additional information