It can be all too easy to keep saying you’ll do it tomorrow, but you could obtain more benefits if you set up your pension now. Let’s look at this in more detail.
When to start paying into a pension
Pensions can be one of those things that get put to one side because there is always something more important to do; however, even though you might think retirement is a long way into the future, 55 – the earliest you can usually access your private pension – will come around before you know it.
Companies such as https://www.hazlewoods.co.uk/expertise/business-accountants/oxford and other business accountants Oxford are experts in knowing how to get the best return for your pension investment, so don’t hesitate to consult them when setting up a fund.
Reasons to set up a pension early rather than late
Of course, the younger you start paying money into your pension, the longer you will be doing so and the more you will have in the pot at the end. Even if you feel like what you are putting aside isn’t worthwhile enough to save, it will accumulate more benefits than you might think.
The sooner you start, the more tax relief you will be entitled to; in turn, the more the final value will be boosted. What’s more, if you are eligible to join a workplace pension, your employer will be required by law to help you build up a pension. Contributions can start from the moment you begin work; therefore, if you join a scheme at the age of 16, this is a great head start for your overall retirement pension, allowing it to grow and mature over the years.
Finally, setting up a pension early takes the pressure off later in life; for example, when you hit your 30s and have life-changing responsibilities such as children and a mortgage, it can be hard to find the extra money to contribute; what’s more, you will feel the need to put in more as you have fewer years ahead of you to save for your retirement.
