Retirement Planning: Why Starting Early Matters

Planning for retirement may seem like something you can put off—but the earlier you start, the more you benefit from compound growth.

The Power of Time

Investing just £200 a month starting at age 25 could give you over £300,000 by retirement. Wait until you’re 40, and that number drops significantly—even if you invest more monthly.

Use Workplace Pensions

In the India, auto-enrolment means most employees are already contributing to a pension. But:

  • Check your employer’s match policy.
  • Increase your contribution when you get a raise.
  • Consider a Self-Invested Personal Pension (SIPP) for additional flexibility.

Understand Your Retirement Number

Calculate how much you’ll need to live comfortably post-retirement. Tools like the MoneyHelper Pension Calculator can guide you.

Diversify Your Portfolio

Don’t rely solely on pensions. Diversify with ISAs, property, or even dividend stocks.

Stay Educated

Pensions and retirement planning rules change. Make it a habit to stay informed annually, especially with evolving tax laws.

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