It is generally true that most companies find it more of a challenge to engage their younger staff with saving for a pension than those in their 40's and 50's. However, all other things being equal, in defined contribution pensions, the odds are heavily stacked in the favour of the young so much more than those in their 40s and 50s - particularly now the annual tax allowance limits have been reduced.
It's all about time and the magic of compound interest. The further away you are from retirement, the more time you have to save and for those savings to also build over time.
Some parents and grandparents start a SIPP for their children/ grandchildren - so saving for a pension really can start at birth!
For those without such generosity, your pension savings should start when you begin working. It really doesn't matter how small you start - even £10 a month will mean your employer will then pay something to your pension and the tax man will contribute £2.50 in tax relief. If you pay nothing then you and your pension savings will miss out on your contribution, your employer contribution and the tax relief. Even very small savings will grow over time and you can increase your contribution annually as your salary increases.
Most people starting work are likely to be able to tweak their budget to find £10 a month, and then build on that year after year.
The sooner you start your pension saving, the more you will benefit and your 60 year old self will thank you for it.
Kid, it’s never too early to start your pension says Becky Barrow, Money Editor of The Sunday Times Saving early can leave your finances sitting pretty in later life. There are seven ages of man, according to William Shakespeare, but caring a jot about your pension does not appear to kick in until the fifth age for most people.While it would be odd if thoughts turned to contribution rates and default funds during the “mewling and puking in the nurse’s arms” stage, it is unfortunate that so many people engage with their pension — or lack of one — only after their 50th birthday celebrations.