Savers 'should invest in pensions early'

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Savers 'should invest in pensions early'

Wed 21st Apr 2010

The best way to get the most out of a pension is to begin saving early, according to one finance expert, who is concerned about the delay in implementation of proposed schemes.

Tom McPhail, head of pensions research at Hargreaves Lansdown, stated that people should be encouraged to save for their retirement from the moment that they can afford it.

He advised savers to ignore the auto-enrolment regulations about how much of their band earnings will get put aside, since they may need to gather more than that.

In his view, it is a good idea to urge employers to contribute and request that they put in more than the minimum three per cent of earnings if possible too.

These comments follow the news that Confederation of British Industry has criticised the charging structure of the National Employment Savings Trust scheme and suggested it could deter savers.

Mr McPhail added: "One of the problems with the auto-enrolment regulations is that they are being delayed. If you are going to save for retirement get on with it as soon as you can."

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