A recent report by Aon which shared the findings of 3,000 millennials aged 22 to 35 concluded that 2 in 3 workers will not have enough saved by the age of 67 to retire comfortably. Their research also found that young adults are not prioritising saving for their retirement, as 40% of young adults in the Aon survey felt that retirement could wait.
‘It may seem inappropriate to discuss financial planning for millennials when many young people are struggling to save, still paying off student debt and don’t own their own home. However, statistics show that the earlier you can set up regular savings plans the more likely you are to achieve your financial goals in retirement. This is certainly true of equity investing where we recommend clients invest for the longer term or at least five years. In terms of pension planning if you are working for a company you should consider opting into your workplace pension as your employer will contribute to your pension savings too. If you are new to investing we recommend you read our Beginner’s Guide to Investing and my article – Why open a pension when you start work?’
Aaron Abraham, independent financial adviser, and member of the Harpenden financial planning team continued:
‘We often speak to older clients in their 50’s or 60’s who have younger children or grandchildren and want to encourage them to start saving. There are many ways you can help them with their financial planning. You can set up a pension plan in your child’s name and save up to a maximum of £2,880 each year. The government will top this up by £720. If your children or grandchildren go on to auto enrol in a workplace pension scheme or set up their own private pension plan when they start work they will have some savings to start them off. You could also consider gifting money to your children or setting up trusts for them. If you want to speak to a financial adviser at Lonsdale Wealth Management we offer a free one hour consultation to discuss inheritance tax planning and estate planning. Call us on 01582 466900 for more information.’
Please note The Financial Conduct Authority does not regulate tax or estate planning. The value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.