The general rule is that the earlier you start putting money into a pension, the better – how much you get out of your pension depends on how much you contribute and for how long, as well as how the investments perform.
Even if you can only pay a small amount into your pension to begin with, starting early can potentially make a large difference to the size of your pension when you retire. But don’t worry, it’s never too late to start putting money into a pension and benefitting from the tax relief on your contributions.
But remember, pensions are just one part of planning for your retirement. As with all saving and investing decisions, what you do with your money will depend on your personal circumstances.
It’s also important to remember that, as with all investments, the value of your pension can go down as well as up so you may get back less than you put in.
If you’re not sure if a pension is right for you, you could discuss your options with one of our financial advisers.