A 20-Something’s Guide to Pensions: How Are You Preparing?

When you’re young, it’s likely that you very rarely give any real thought to issue of your pension, but the truth is, the earlier you can start thinking about it the better. Unfortunately, the issue of providing for yourself when you’re older isn’t the easiest topic to delve into, and similarly, it’s not the most entertaining one in the world, either. This can make research tiresome and, at times, gruelling. With that in mind, we’ve put together this comprehensive guide to how you should be preparing for your pension. Digest it and then start your planning. 

Starting Early

The good news is that you’re reading this while you’re still young. Far too many people make the mistake of leaving the research of their pensions until their 30s or even 40s, and by this time it is often too late to be able to make too many meaningful decisions regarding how you want to ensure you have money for your retirement. However, by starting researching at an early ago, you have plenty of time to weigh up all viable options against one another and to see what’s going to be a winning strategy for you.

The Various Forms of Investment

One of the most crucial aspects of wealth management in general is to ensure you have a good grasp of the various forms of investment you can participate in.  This is because through investing your money, you can multiply the total sum of your savings. If you’ve never invested before, you might want to consider relatively low-risk strategies such as property investment. Of course, you need to remember that all investment is risky, but trading on the Foreign Exchange markets is a much more risky enterprise than investing in buy-to-let property, let’s say.

Taking Control of Your Pension

The other crucial point to remember about your pension is that it’s controllable. Although traditional pension pots are usually of the sort where you can only draw money out on a monthly basis at an agreed amount, through a pension known as a SIPP (self-invested personal pension) like the ones offered by James Hay, you have full control over your pension pot, so if you’d like to withdraw a significant percentage of it at once, you can. Naturally, this might not be the best solution for everybody, as some people could prefer the stability and regularity of a standard pension, but this is why it’s important to start researching your options as early as you can.

In conclusion, it’s great that you’re already thinking about preparing for your future. Now that you’ve read out straightforward guide to pensions, you should feel more confident about how to prepare.

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