Start saving for retirement now, consumers told

| March 31, 2009
Start saving for retirement now, consumers told

Brits without a pension are being advised to set one up now rather than wait until the recession has passed.

Pensions specialist Fidelity International warned that people who wait until 2012 to start their pension could be throwing away as much as £175,000.

Julian Webb, pensions expert at Fidelity International, said: “At the moment people are focusing on reducing debts, which is very sensible, but retirement is non-negotiable.”

He added: “Anyone who starts providing for retirement early in life will generally do better than someone who waits until later on.”

In 2012 the government will launch its Personal Accounts scheme in a bid to help the seven million Brits who are currently not saving enough for their retirement.

However, Webb believes that Brits should start saving now, rather than wait until 2012.

“Personal Accounts in 2012 will see a big shake up for both companies and employees but a real concern is the prospect of people sitting back until they are forced to save - especially when many will be feeling bruised and battered by the credit crunch,” Webb said.

“Starting early simply gives people the opportunity to build a bigger pot by retirement - it also puts people in a better position to recover from falls in stock markets and interest rates.

“I’d suggest anyone with access to a company pension scheme but who decided not to join should reconsider that decision now.”

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  1. Simon says:

    I would wholeheartedly agree - there is no time like the present to start savings on a regular basis - and it doesn’t have to be in a personal pension.

    Taking a long-term view on it I can think of no better time than the present with the FTSE100 around the 4000 mark and any further falls in the market will reward the regular investor in the long run through the benefits of “pound cost averaging”.