How much of your money are you saving for the future? Have you started saving for retirement or thinking about your financial future?
When you are in your 20s, retirement seems so far away that it’s easy to put off planning for it. But starting to save even small sums when you are young can make a huge difference to your options when you want to stop work. Money that you pay into a pension in your 20s, has at least thirty years to grow, and if you start early, you don’t need to pay in as much each month as you would if you wait until your 30s to start to build up a good pot of money to support you in later life.
Remember…
The other thing to remember with pensions is the tax relief that you are entitled to. If you save £80, the government tops that up with another £20. That is then all invested so it can grow for your future.
It’s hard to motivate yourself to save when you don’t know what you will need to be comfortable to so many years into the future. The Pensions and Lifetime Savings Association estimates that for a moderate standard of living in retirement, a single person will need an annual income of £31,300. That “moderate” standard of living means being able to run a car, go on holiday for two weeks in Europe and spending £1,500 per year on clothes.
If you pay your National Insurance contributions for 35 years, you will get a full state pension of around £11,500 per year in today’s money so that will cover some of that income, but where will you get the rest from?
What Options Are Out There?
Some people buy rental properties and the rent provides income, others set up businesses that can keep giving them an income even after they stop working in the business themselves, but the vast majority set up a private pension to cover a good proportion of that income in later life.
If you would like to discuss any of these options and find out what steps you can take to prepare for the future, it is worth having a chat to our financial adviser who can talk you through options and guide you in making these decisions.
If you’re a CrewFO member, and would like further support on securing a better financial future, log in and reach out!
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Email us at: hello@crewfo.com 📧
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At Crew Family Office, we are here to help Superyacht crew navigate their finances and make the right decisions.
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