Start early for financial success
Individuals need to have the three pillars of financial planning – saving for retirement, buying a property and saving for the future – all under control by the age of 30, according to financial advisers.
Research from the Prudential has shown that advisers believe consumers will spend the rest of their life playing catch-up if they haven’t put the basic building blocks of financial security in place before they hit their thirties. Advisers said starting a pension should happen at 22, buying a first home should happen at 25 and starting to save should happen at the age of 26.
However, the Pru’s research showed the reality as slightly different, with the average first-time buyer age now set at 34 years old. The average age to marry – often a trigger to sort out finances, according to the Prudential – is now 29 for women and 31 for men.
Roger Ramsden, executive director of Prudential UK, said: “At the bright young age of 26, many youngsters are not yet fully aware of the benefits that starting a pension and savings scheme can bring. For one thing, few are aware of the significant tax breaks of a pension. It is only later that they look back and wish they had acted earlier to maximise their finances.”