Pensions should be started by age 25
11
Nov
Pensions should be started by the age of 25 according to a new study by Scottish Widows.
The Scottish Widows study argued that rising life expectancies, combined with people being saddled with large debts earlier in life, mean that today people should start saving for their retirement at the age of 25 if they want to enjoy a comfortable old age.
Economist Steve Lucas based the projections on predictions that a third of children born in the UK this year will live to be 100 years old.
With the costs of University and Housing it difficult to imgine people in the UK every accumulating sufficient funds.
Lucas went on, it is estimated that someone born in 2012 could expect to build up around £73,000 worth of student debt and they would typically be aged around 52 by the time they have paid this off.
They also face being aged around 61 by the time they have cleared their mortgage and can expect to be around 70 years old before they retire, he said.
Expats in general earn higher amounts and pay less tax, thus the have an opportunity not to fall into the retiremant gap. They do however have to understand that creating sufficient money takes careful planning and investment.
It’s true to say the earlier you say the better. I’ve never had a client complain about having too much in retirement.
Nigel Green deVere Group
Blog written Novemeber 11th
I hope at some point IOD pay is brought to the anetttion of the public. I prepare tax returns and I know many in the business. We concur that 95% of the injured firemen and police getting free taxable pensions at a very early age ..are not injured at all and certainly not from work activity. A giant state fraud generally ignored.