In your 20s and 30s, you possess one of the most valuable assets to retiring rich \u2014 time, and although it\u2019s not in the fore front of most of your minds, contributions to a retirement account at this age will provide a lifetime worth of\u00a0growth. Even minor contributions during your 20s and 30s will create a\u00a0higher pay out in retirement than if you were to make bigger\u00a0contributions in your 40s and 50s.<\/p>\n
Luckily for most 20 and 30 year olds, your minor contributions (which can potentially help you reach \u00a31 million or more by the time you retire) don’t even have to come out of your pocket, wit workplace pensions,\u00a0your small contributions can build to something substantial in the long run.<\/p>\n
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Here are a few other ideas for this era of your life.<\/p>\n
Increase your financial\u00a0knowledge<\/p>\n
Take a course, go to a seminar or engage in a professional opportunity that will help you gain financial skills and knowledge. Not only will it give your resume a competitive edge, but it will also contribute to your preparations for a secure retirement. Financial know-how is not something all young adults have access to, therefore motivation is needed to learn about it. Did you know that at least one-third of companies offer employees access to financial advisers who can help them in their investments and wealth management planning?<\/p>\n
The more knowledge you have, the easier it will be to make solid, informed decisions.<\/p>\n
Make a plan where saving for retirement is a priority<\/p>\n
Although rent, student-loan debt and living expenses may make it seem impossible to save for retirement, and not be a priority for you right now, a little does truly go a long way. The ideal savings rate would be about 10%-15% of your annual pay for retirement, but if that seems challenging, start small and work your way up saving more each month. Try to make saving automatic so that the money does not even reach your bank account from your pay check \u2014 it’s sent directly to a retirement account.<\/p>\n
Enrol in your employer’s workplace pension scheme<\/p>\n
Every employer, in the UK, with at least 1 member of staff\u00a0are now required to provide their employees with a workplace pension, if they meet the qualifying criteria. Your employer with contribute to a pension for you, matching the contribution you make from your pay. If you work in the UK, are aged between 22 and state pension age and earn more than \u00a310,000, you qualify and should make sure that you opt-in. Despite losing some of your income every pay-check (you do get it back eventually, don’t worry), the value of having that little bit extra in your retirement is far greater than having it right now.<\/p>\n","protected":false},"excerpt":{"rendered":"