Pension Attitude Live for Today with One Eye on Tomorrow
Published / Last Updated on 24/09/2020
Change Our Attitudes – Pension Are ‘Long Term Savings’
If you are in your 20s or 30s, pensions and retirement seem such a long way off. You have immediate concerns like saving for a deposit, mortgages, rent, car finance, family. Pension is the last thing on your mind.
If you/employer are paying in just the minimums into work place pension then you pay 4% net, 5% gross and employer 3%. Say £15,000 earnings lower threshold = £6,240 = the means just £8760 threshold earnings X 5% = £36.50pm you and £21.90 employer = £58.40pm
It is time to change your attitude towards savings.
We suggest you ALWAYS break the amount down that you can afford to save into 3 areas.
- Short term saving – savings that you are going to use in the next 5 years
- Medium term savings – savings that you are going to use in 5-10 years from now
- Long term savings – savings that you are going to need in 10, 20 or 30 years.
THEY ARE ALL AS IMPORTANT AS EACH OTHER.
If you are in your 20s and paying £400pm car insurance and £200pm car finance and not saving a penny – you need to revaluate your position. Drive an older car with 3rd party insurance cover only and save for a rainy day.
The importance of changing attitude to your savings is paramount.
“Live for today with one eye on tomorrow”.
