Can You Make Saving Sexy?

Editor's Views: Saving small amounts can make a huge difference in the long run, but many of us still need to be persuaded to give up our daily treats

Holly Black 23 October, 2020 | 11:22AM

Woman with megaphone

The beginning of any investment journey can be the most discouraging. I remember the first payslip I got that included a pension contribution. I felt very proud at the time for deciding to opt-in to the scheme (this was pre-auto-enrolment); I was sacrificing 3% of my current pay packet to save towards my future – how incredibly mature.

How incredibly disappointing. The measly amount actually going into the pension turned out to be less than impressive, and I couldn’t fathom how it would ever add up to a retirement fund. That feeling was compounded when I got my first annual statement which said: "CONGRATULATIONS, if you keep saving at this rate, you can expect to retire in 45 years on an enviable income of £3,000 a year." WHAT?! 45 years of sacrifice for a measly £3,000? It hardly felt worth it.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Holly Black  is Senior Editor, Morningstar.co.uk

 

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