The Institute for Fiscal Studies has released a report looking at when might be the best times for individuals to save for retirement.
The findings are obviously very general but some chime in with what we find from our clients and our personal finances.
What have the IFS said?
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Most individuals expect their income to increase over their working lives.
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Those whose earnings do increase later and save more for retirement at this point would find their spending is smoother.
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Households with children typically need to spend more to get the same standards of living as those who do not.
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Given this, parents who save more for retirement before their children arrive and/or after they have left home may find it easier to maintain their lifestyles over their working lives.
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The same applies to graduates where you replace children leaving with the graduate repaying the loan or the Government writing it off.
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The employer offering to match someone’s pension contributions encourages them to save but most contribute the minimum required.
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The IFS believes there is no issue with this if individuals significantly increasing savings later when they can.
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They believe someone uncertain about their future earnings should save more earlier on, particularly when earnings are high.
