Will you regret not saving sooner?

POSTED: 6th March 2013
IN: Personal Guides

It’s hard to imagine what your finances will look like in 20 years time but if you fail to take action sooner rather than later, you could risk a less financially comfortable retirement.

undefinedNew research conducted across 2,059 adults on behalf of Standard Life found people’s main financial regret was not saving for retirement soon enough.

In fact, as many as 15 per cent of people wished they had begun saving for later life sooner, suggesting smart tactics now could improve your financial provision when it comes to retirement.

While no one can say for sure how your finances will look in the future, making the right decisions now could play a crucial role in securing a pleasant standard of living in later life.

You might decide to open a cash ISA to kickstart your savings in the medium-term and can look to longer term investments when you have built up a substantial pot.

Julie Russell, of Standard Life, is urging people to begin saving earlier, believing that “the sooner we start saving, the bigger the impact on our future finances”. 

“Someone who starts saving £100 a month at age 25 could receive an income of £3,570pa by the time they are 65,” she said. “Using the same assumptions, someone saving the same amount from age 40 would only have a pension income of £2,000pa by the same age.”

You may feel you are too young to directly invest in a pension scheme, which is why a cash ISA may be a good starting point as it is flexible and enables you to access money sooner.

Not only will flexing savvy savings tactics now help you cover the cost of future expenses, it will also help you develop healthy money management skills so you are well-equipped to handle the financial demands of life.

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