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10 Years of Auto Enrolment

Why you're not too young to start a pension

Pensions are a long-term investment. Anyone joining a pension scheme at age 22 will potentially be contributing to a workplace pension scheme for 40 years or more.

During that time the contributions you, your employer and the Government make (through tax relief on your contributions) will be invested for you and grow in value.

Those contributions made at the earliest periods of an individual’s working life have the potential to provide the best return on the money invested, as the money remains invested for a longer period of time and will benefit from compound growth – the further returns on the annual investment returns.

This doesn’t mean it’s too late to start saving for a pension or increasing the amount of money you save after you pass your twenties, it just means the money you save will not have as long to work for you and you may need to pay more attention to the amount you save and the growth in the value of the pension to ensure you achieve the best outcomes.

You may wish to check the amount your employer will pay into your workplace pension if you increase your own contributions, and, if you can afford to do so, maximise the amount of additional contributions paid into your pension pot.

We understand that getting round to looking at your pension may be way down your list of priorities, and pension saving doesn’t seem particularly exciting when you may be ages away from retirement and there are more interesting things to do, but saving for a pension is important and the sooner you develop a savings habit and engage with your pension the better prepared for retirement you will be.

Whatever your age, now’s a good time to connect with your pension.

Dig out your last pension statement or if possible go online and check the current and projected value of your pension(s) to see if you’re on target to meet your financial needs when you’re planning to retire from work.

If you haven’t ever saved into a pension, speak to your employer about joining your workplace scheme.

Your future self will thank you!

There’s lots of pensions information covering a host of pension related subjects on the Usdaw pensions website; https://www.usdaw.org.uk/Help-Advice/Pensions
The content of this article is for educational and general information purposes only. It does not constitute any form of advice or recommendation. Visit www.unbiased.co.uk for details of independent financial advisers (IFAs) in your area. Usdaw has an affinity partnership with a group of IFAs but is unable to endorse any individual advice provided and is not liable for any subsequent business transacted directly with Usdaw members. Usdaw has endeavoured to ensure the information provided is accurate but cannot guarantee that the information is free from inaccuracies or typographical errors.


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