Putting Money Aside Now Eases Burden Later in Life

19 May 2012

In today's society there is so much pressure on those in their twenties and thirties to save. Whether it's for a new car, their first home or even a dream holiday - the list can seem endless.

However, how many are actually thinking 30 or 40 years into their future? Fast-forward past the joys of getting married or having children and watching them grow and not before long the dream of retiring will quickly appear.

Daydreams of being able to take each day as they come and without the pressures of thinking about work can become a regular occurrence for some, while the thought of how things will be paid for can become a nightmare for others.

In order to enjoy retirement properly people need to have an appropriate nest egg in place, and as details involving state pensions are constantly changing many Northumbrians may be left worrying how they'll cope.

Women who have taken time away from work to raise a family are particularly vulnerable. Proposals to equalise the pension age for both sexes could see many women currently in their fifties with insufficient time to financially prepare for a new retirement date - some reports have estimated that it could cost the worst-affected more than £10,000.

It can be extremely easy, for both men and women, to put off saving for their retirement. There is always something which crops up to swallow any surplus money and it's easy to put off saving until another day.

If people are not careful, regular delays can see them many years into their career before they start to think seriously about their pensions. 

What some do not realise is that by paying into a pension scheme, even just a little each month, from a younger age can hugely reduce monthly repayments later in life than if starting in their late thirties.  

I would urge anyone, no matter their age, to seriously start considering their pension contributions and to check that what they are paying in now will offer a sufficient return further down the line. It may seem so far away now but starting early will make a huge difference and will almost certainly make things easier as people approach retirement.

Any Northumberland resident concerned about financial or debt matters can access free face-to-face support from the Citizens Advice drop-in service at Morpeth's Tower Buildings, for opening times or alternatively for free telephone advice contact the Northumberland advice line on 0844 4111 309.