Retirement: When Should You Start Saving?

The important question of when to start saving for retirement is one that many of us ask ourselves, always hoping that we haven’t left it ‘too late’. In a confusing time where income and interest rates are often low yet government advice is that we should all be saving in ISAs and private pensions, many people are left in a quandary, unsure of when and how to go about saving for later in life.

The earlier the better?

A survey conducted by Lottosend has brought to light some interesting figures, with nearly 60% of the 1500 people surveyed saying they think we should be saving by the time we are in our 20s. Perhaps most interestingly of all however was the direct trend that showed the older we are, the younger we believe we should start saving. For example, 49% of people aged 18-24 believed we should start saving in our 20s compared to about 60% of those aged 35-44 and a whopping 71% of those aged 65+, with every age demographic in between also following this pattern.

Times are changing

It seems that opinion across the country may well be swaying towards an agreement with this belief, as HMRC revealed earlier this year that ISAs taken out by adults are at their lowest ebb in ten years, yet those taken out by people under 18 continued to rise year-on-year.

While this could arguably be put down to the fact that interest rates tend to be better for junior ISAs and so low for regular ones currently that many may deem that the benefit of being tax free adds little worth over a regular savings account, it could instead be the beginning of a shift towards younger people taking steps earlier in life to secure their own retirement, breaking beyond the stereotype of simply living in the moment and not considering the future.

Whatever the case may be, the one undeniable fact upon which everyone seems to agree is that regardless of what age we actually start saving, having a nest egg to fall back on further down the line is essential.