Why your mid-30s is the time to start taking your pension seriously

Adjusting to adulthood can be a difficult stage of life, as you strike out on your own for the first time and adapt to huge changes at home and work, but this is also why your mid-30s is the time to start taking your pension seriously.

It’s understandable that getting to grips with your finances can get pushed down your list of priorities, particularly saving for your pension.

Of course, auto-enrolment has helped many young adults start planning for the future, but there comes a time when you need to be more proactive in ensuring you get the retirement you want and deserve.

What happens in your mid-30s?

According to research by Standard Life, just 23 per cent of people contributed more than eight per cent of their earnings into their pensions before age 36. But by age 36, this figure goes up to 35 per cent.

So why are so many people stepping up pension saving at this point?

The same study showed that 37 is the average age at which people say they feel more financially comfortable.

Similarly, the research revealed that this is the point where people tend to become more confident in making financial decisions.

With age comes responsibility, from paying for a wedding and providing for your children to keeping up with mortgage payments and other household expenses.

Guaranteeing financial security, for both now and the longer term, becomes much more critical, so it makes sense that this is when people start actively working to secure their financial future.

Have your retirement plans changed due to the pandemic?

Time to be serious about your pension

It’s also an excellent time to take pension saving more seriously, as by the time you’re in your mid-30s, you’ll likely still have several decades of employment.

Increasing your contributions when you have many years ahead of you gives you the full opportunity to take advantage of compound interest, as the size of your pension pot can grow significantly over time.

The fact that time is on your side also means you’re in a much stronger position to withstand and recover from market downturns, so you can afford to take a long-term view of your pension and more comprehensive retirement planning.

Preparing for retirement.

Regardless of age, preparing for retirement can be daunting for anybody, but the rewards are considerable if you start as early as possible.

If you have any questions about pension saving and ensuring you’re financially secure in the future, please get in touch with our team of expert financial planners.

We’ll be happy to speak with you so you can confidently and confidently approach the future.

Contact us now.