14:16 11 April 2013
You can never be too young to start saving for your retirement. Latest government statistics shows that the life expectancy of both men and women has increased significantly. This means, that you’ll get to spend more years being retired.
The good thing about starting early is that you’ll benefit from compounding interest. This is when you earn interest not just on your original capital but also on the interest you’ve already earned the previous year. If you start saving when you hit 40, you’ll have to contribute twice the amount each month as a 30-year-old so you’ll get the same amount of savings at the age of 65.
You have several savings options. When choosing, make sure that you pick the one that will give you tax benefits. Should you decide to put payments into pension, you’ll enjoy tax relief. You can also choose to start with Individual Savings Account or ISAs, which protect your investment returns from tax.
Aside from starting early, it would also be beneficial if you explore all your options.
Aside from starting a pension plan and putting money on ISA, you can also invest on properties or get your feet wet on stock trading or share dealing.
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