There are a number of benefits to saving for your retirement from a young age. The earlier you start saving, the more you'll have to support you in retirement because your money will be invested for longer giving your pension fund more time to grow in value. If you save into a workplace pension your employer will also contribute to your pension fund.
Most people benefit from tax relief - this means more than what you're saving directly goes into your pension fund, so even a small amount from a young age can make a big difference to your pension.
When you're young, having a longer period of time to invest could mean you're more likely to feel comfortable investing your pension in higher risk assets such as stocks and shares. The risk of losing money is
greater with higher risk assets but they offer greater potential for growth.
Particularly over the longer term, this could mean bigger returns for your pension. When investing later in life, people tend to choose lower risk investments. Saving is a good habit to get into from a young age.
We know young savers face pressures to allocate their income elsewhere such as student loans or saving for a house deposit, however demands on your income such as child care and loans will only increase as you get older.
It's therefore a good habit to start saving from a young age even if it's a small amount as it means you won't have to reduce your standard of living later on in life when you're forced into thinking about saving for retirement.