It Is Never Too Late To Save For Retirement

It Is Never Too Late To Save For Retirement

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Older workers have been told it is never too late for them to save for their retirement.

Older workers approaching retirement age have been advised that it is never too late for them to add funds into savings accounts such as ISAs or fixed rate bonds to provide them with money after they finish work.

That is the opinion of Robin Ellison, partner at Pinsent Masons, who has said that anyone nearing the time when they will finish work to enjoy their retirement must make sure they add cash to their savings funds until the latest stage possible.

Mr Ellison was speaking following the publication of research by Saga last week (February 15th 2011), which revealed that the quality of life for over-50s in the UK is deteriorating as they are suffering form falling income, higher unemployment and rising inflation.

Therefore, it could be a good idea to plan ahead financially and Mr Ellison added that no matter what age an individual is, there is still time to put funds aside for retirement and went on to explain that there are numerous benefits of doing so.

"Despite all the drawbacks and expense overheads, it is virtually never too late to save for retirement. The tax relief on the lump sum at retirement probably makes the exercise worthwhile on its own," he noted.

The study conducted by Saga suggested that people in the age bracket between 50 and 59 are the hardest hit group in terms of savings, with lower socioeconomic groups across all age bands above 50 suffering disproportionately.

As a result, it may be particularly important for those workers in the very final stages of their careers to make sure they are putting sufficient amounts of their income to one side every month, despite the fact that factors such as inflation may mean they are tempted not to do so.

Meanwhile Younger members of British society need to be given encouragement to compare savings and then actively use products such as cash ISAs and bonds, an expert has suggested.

According to Jason Riddle, co-founder of campaign group Save Our Savers, more needs to be done in order to make sure that young people are thinking about their future by storing cash away in the present.

Mr Riddle explained that the youth of today will find it harder to adopt a habit of saving in the wake of the recession and added that "there's a real risk of this generation reaching middle age without any meaningful financial provisions".

He noted that "young people today will be picking up the bill for the financial crisis for a very long time to come", as increased taxation and higher debts take their toll.

Earlier this month, Scottish Widows revealed that more than a third of all adults in the UK are not currently saving at all.

An expert has advised people on how they can avoid spending more than they earn.

Many Britons may find themselves regularly needing to resort to dipping in to their savings accounts or putting expenses on their credit card in the days leading up to their next pay day.

However, according to Ed Bowsher, head of consumer finance at lovemoney.com, there are a few simple steps consumers can take in order to make sure their current account balance is sufficient by helping their wages stretch further.

Mr Bowsher noted that forming a monthly budget is crucial, as "if you monitor what you spend and plan your future spending with real care, your spending should fall".

He was speaking after the release of official government figures by the Resolution Foundation recently (February 28th 2011), which revealed that average pay is on course to be no higher in 2015 than it was in 2003, even though inflation looks set to continue to rise.

The lovemoney.com official added that there are ways of boosting income, such as renting out a spare room.

About the Author:
UK Price Comparison website Which4U - Compare Credit Cards, ISAs, Bank Accounts, Fixed Rate Bonds, Savings Accounts, Mortgages, Insurance, TV & Broadband and Gas/Electric bills to find the best UK deals



Article Originally Published On: http://www.articlesnatch.com


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