'The younger you can start a private pension the better. Nowhere else can you double your money each month'

‘I am far too young to think about pensions’.

You may have said this yourself or heard a young person saying it who is just starting work.

Amanda Heath - founder of Melton & District Money Advice Centre

placeholder image — Amanda Heath - founder of Melton & District Money Advice Centre

But time creeps up on us and suddenly you wish you had chosen to pay more into a private pension.

Especially when you see people the same age as you able to stop work or go into semi-retirement.

Like Piggy Banks, pensions are a great way to save for your retirement

Recently we did a session with some 18-year-olds who were all doing apprenticeships.

They were getting paid a good wage and they had all opted out of the private pension offered by their employer.

So, we did a session on educating young people.

State pensions started in 1948.

But in those days, there was a large young person’s workforce, people were mainly in lifetime jobs, and the older population was much smaller.

So young workers’ tax paid for the current older person’s state pension.

That worked but now we have far fewer young people in the workforce, most jobs are not life-long contracts and we’ve got a larger older population.

The maths no longer adds up!

We are in a crisis no political party wants to handle – a hot potato.

How much do you think the government has ready for our state pensions? A big fat zero.

This is why there has been a push from Westminster to get employers and employees starting private pensions over the last decade.

The state pension age is increasing for this very reason also.

The maths doesn’t add up.

So, the younger you can start a private pension the better.

Nowhere else can you double your money each month.

No savings account will give you the same return.

You put in £100; you’ll get £100 back with employer contribution and tax relief from the government.

Maybe over the summer, while you are relaxing, take a moment to contemplate where you are heading and if you need, or even can start, to look at pensions.

We have some great pension companies locally you can see face-to-face to have a chat about where you’re heading.

And if you hear of any young people saying ‘I’m far to young to think about pensions’ pass on the knowledge – you are never too young to plan for your retirement.

Your future self will thank you!