Why is it more important than ever for young people to think about retirement?

We are currently living in a perfect storm of poor pension conditions. Everything from everyday items to mortgages costs more than ever (in fact, mortgage rates hit over 6% in July), which may make it tempting or necessary to cut back on your pension contributions in order to stretch your salary elsewhere. On top of the cost of living, the government is offering smaller and smaller pension provisions.

“It has always been important to think about pensions, but as we all start to live longer lives, what the government can offer in pension provisions gets smaller and smaller,” says Burt. “Add into that the burdens already in place on the government from things like the pandemic and an ageing population, and the future of what we might get in the form of a state pension suddenly looks a bit scary.”

You probably already know that your pension is important, but if you haven’t even started making plans, the prospect can feel a bit overwhelming. You might find yourself putting it off and thinking, It can wait until I’m a bit older.

However, Burt recommends taking control of your retirement plan as soon as possible, even if it’s an intimidating prospect.

“The sooner that you can think about your retirement savings, the more you’ll be able to ensure you’ve got a lifestyle at retirement and can crucially actually enjoy that hard-earned period after you’ve stopped working,” she says.

Is it ever too soon to start getting ready for retirement?