To some, retirement may seem like a long way off; another lifetime almost. It is tempting to live for today and leave the future to sort itself out. As a twenty something year old, paying into a pension did not appeal to me at all. Retirement seemed so far away in the distance and quite frankly I desired to live for the short term; holidays, clothes, eating out. I am thankful to my mother for instilling the importance of paying into a pension from a young age.
One may think along the lines of “I will live one way or another”. The question I have is how will you live? Will you be comfortable after retirement or will you be living on the bread line? It is no fun as an elderly person deciding whether to buy food or heat your home. This is the circumstance in which many elderly people in the UK live in. Those who were not employed on a permanent basis or did not prepare for their future are existing on a meagre state pension.
If you take out a pension with your organisation, your employer will contribute a percentage. Yes, you will forfeit a portion of your monthly income but the benefit of this far outweighs the reduction.
If you are self employed you can set up your own “nest egg” with a bank or other financial institution. Do thorough research before making a decision. Identify which plan will work best for you and your family.
The saying below has always stuck with me:
“You reap what you sow.”
We are often required to sacrifice now in order to gain later. This will mean thinking beyond tomorrow, next month and even next year. It will mean planning for your future; that in the event of life changing circumstances, your home and livelihood will be taken care of.
Do you have plans in place for your future?
What or who encouraged you to take action?
What advice would you give to a young adult today who is reluctant to take up a pension plan/save for the long term?