Get saving now for a prosperous retirement

Money issues weigh heavily like a lead weight on many people’s minds on a regular basis - unless, of course, they’re a banker, company director or lottery winner.

A Caribbean holiday sounds too tempting, as does a new Audi, to inflate the savings account. A conundrum; live for today or plan for tomorrow?

Many choose the latter option. Financial security in retirement is a luxury many retirees do not enjoy, but all crave.

A comfortable retirement can not be achieved on the state pension alone. In reality, a sizeable private pension pot is also a requisite.

There are lots of different investment accounts you can use to become an active life saver, such as a SIPP (Self Invested Personal Pension) or a stocks and shares ISA - both of which offer tax incentives.

It is prudent to commence saving for the future as early as feasibly possible.

According to a study by AJ Bell Youinvest, you will need £270,000 savings just to meet the equivalent of the minimum standard of living when you retire, while 1.6 million pensioners live below the poverty line.

Despite 60% of people in the UK being happy with their financial security, nearly a third - 15 million - are not making any effort to save for that rainy day.

The issues faced when living an impoverished retirement are plentiful; do I eat or heat the house today? When can I afford to see my friends socially? I’m not mobile enough to walk but I can’t afford to run a car. It needn’t be this way.

£200 put aside per month starting at age 30 is enough for a pot of over £250,000 through a personal pension. That Caribbean holiday could be a reality.

AJ Bell argue the need to save has never been clearer: “As you move through life on your own career ladder your savings goals may change, but the need to plan for the future is always there.”

In collaboration with AJ Bell Youinvest

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