Caravan was one of the first charities to highlight the hidden demographic time bomb of a whole generation of pensioners who were likely to suffer financial hardship because they hadn’t saved an adequate amount for a comfortable old age. Sadly, as demands on Caravan’s resources becomes ever greater it would appear that this is indeed the unfolding scenario.
So for you to avoid becoming another one of our beneficiaries, it is essential that financial planning is taken seriously at an early stage in one’s career. Granted, that’s pretty difficult when you’re in your early twenties when retirement seems a long way off. Nonetheless, at Caravan we feel it is something that everyone should assume a certain level of responsibility for.
It is so important for individuals to take responsibility for their own retirement rather than simply relying on a benevolent employer or the state. Admittedly when you look at the figures
required to build up a decent pot of money it can be quite alarming, and this is often enough for many people to forget the whole idea in the mistaken belief that they “can’t afford” to save for a pension. But this is a big mistake. To avoid an impoverished old age, it is not necessary to build up a pension fund of hundreds of thousands of pounds — however attractive that may be, it is not a realistic goal for those on average or below average earnings. Far more achievable is a pension which would provide even an additional £25 a week. This would make all the difference between living in penury and a comfortable retirement. And the figures are far less scary; for example, if a 25 year old started squirreling away a mere £25 a month, by the time he was 65 they would have amassed a fund worth around £60,000 which would provide a weekly pension of around £100. So don’t bury your head in the sand and avoid the whole issue; make saving for your retirement top of your New Year resolutions.
