Young & Single
Think you are too young to need financial advice? A visit from a financial planner may prove very useful. Do you know the difference between starting a pension at 21, 31 or leaving it until you are 41. So if you start saving at 21 years old and you are thinking of retiring at 65 years old and you want £800 per month income (not including state pension) you would need to save £121 per month. Leave it to you are 31 years old that figure is £200 per month. Leave it until you are 41 years old then you would have to save £360 per month. The longer you leave it the more it will cost and could become unaffordable so you may have to keep working, downsize your house etc.
Note: Assumes growth of 6% per annum and inflation 2%. Figures from Cashcalc 9th April 2018.
Not only should you be thinking about your retirement but also about the cost of insurance. Life Insurance, Income Protection, both will be much cheaper to buy when you are 25-30 years old. Plus you may still be healthy enough to pay those cheap premiums. I can tell you first hand how important it is to protect the income you have.
“I believe in income protection so much I bought it as soon as became self employed. All I could think was how am I going to pay my bills if I am unable to work” Gareth Elliott – Owner, Newbridge Financial Planning.
Life insurance example – £200,000 for 25 years life cover only as a 41 year old male non smoker will cost you £20.18 per month. As a 31 year old male the same cover would cost you £10.35 per month.
Note: Premiums dependent upon individual circumstances. Some premiums may be increases dependent on health. Figures as of 25th September 2014.