You’ll find lots of helpful tips and information in this guide. But the one thing you won’t find is a magic savings goal. Telling you to save €X or Y% a month is not what this is about. However, telling you to save as much as you can afford absolutely is.
Your monthly budget is uniquely dependent on how you balance your work and life finances – which could be quite different to that of your family, your friends and those living down your street. What really counts is what you choose to do with the bit that’s spare every month.
Here’s a decade-by-decade checklist of how you could get that spare bit to work smarter and harder for your future self.
The 20s decade is the age of financial freedom. It’s the time when you step onto a career path and experience the power that comes with real earning (and spending) potential. At this stage, retirement will probably feel a long way off. But here’s the thing – the sooner you start saving for it the better.
It doesn’t matter whether you’re full-time, part-time, self-employed or work flexibly here, there and everywhere in the so-called ‘gig’ economy. Your future self would feel quietly smug if you’re smart enough to get ahead of the game.
The 20s mantra: watch that spending and save as much as you can.
The 30s decade is all about building on what you’ve started. And if you haven’t started yet, now is the time to do it. Hopefully you’ll be in the cheerful position of earning more because your salary has increased with your experience. Keep an eye on your outgoings – rent or mortgage expenses as well as spending on holidays and interests. Make sure they’re not taking a bigger bite out of your income than they need to.
Your future self would sagely remind you to focus on your retirement savings and not dip into anything other than your emergency savings pot.
The 30s mantra: share the love of income increases with your pension pot.
The 40s decade is an age of big earning and spending potential. All being well, you could be at the peak of your career, or supercharging it by starting your own business or stepping out in another new direction. If you’re lucky, you’ve maybe even seen off a giant mortgage and kicked debts into touch. And if you’re not where you want to be, it’s not too late. But now is definitely the time to get serious about how you manage your money.
This financially powerful time is also a pivotal time as your family starts to grow up and away. Your future self would definitely thank you for taking stock and updating your financial plan.
The 40s mantra: put in every penny you can or you’re not doing enough.
The 50s decade is when those previously distant retirement goals start coming into sight – scarily fast. Looking after the financial welfare of your nearest and dearest is now no longer your first priority. This is catch-up time where you need to focus on boosting your savings.
Whatever you do, don’t be tempted to coast now just because you’re nearly there. Especially if anything major in your life has changed, like financial and emotional downturns or career and relationship shifts.
Your future self would certainly breathe easier knowing there was something in place to protect the pension pot you’re still working so hard for in case anything happens.
The 50s mantra: inject some extra rocket fuel into your savings plan.
The 60s decade is absolutely not an age where one life stops, and another begins. It’s a gradual transition, and one that you should be in control of. So if you don’t feel emotionally or financially ready to stop working, you don’t have to.
Our research shows that 6 in 10 working age people expect to continue working during retirement.1 If you plan well, retirement can be a time of freedom and adventure where you can put your on-paper goals into action.
Your future self may still not be ready to press the ‘go slow’ button, so this is still a time to think longer-term and to plan for a long, happy retirement.
Calculate whether your means meet your expectations by drawing up a budget - set out your household outgoings as well as more desirable expenses (from holidays and hobbies to christenings and Christmas).
Feel free to keep on working if you can – even part-time or casual hours – if it means you’ll get the lifestyle you want in retirement.
The 60s mantra: keep your finger firmly on the financial pulse.
Don’t worry, we’re not suggesting you dish out your money to all and sundry. Instead, we’re thinking how great it would be if you shared the wealth of knowledge in this guide with someone who’s just starting out on their retirement journey.
There’s a world of kids, grandkids and neighbour’s great grandkids out there whose future selves might appreciate the nudge…
This is for informational purposes only and does not constitute nor may be considered a solicitation or advice for the purchase or sale of deposits, securities, goods or other investment products or services or investment agreement. HSBC Continental Europe, Greece hereby does not advise, does not accept any obligation and does not assume any responsibility for the decision of the reader that may have been based on this information.
UNDERTAKINGS FOR COLLECTIVE INVESTMENTS IN TRANSFERABLE SECURITIES (UCITS) DON'T HAVE A GUARANTEED RETURN AND PREVIOUS PERFORMANCE DOES NOT GUARANTEE FUTURE PERFORMANCE.
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