Young Britons urged to start saving as 'soon as possible'
Brits can take advantage of compound interest, says expert
Young Britons urged to start saving as 'soon as possible'”
Young Britons should make the most of the effect of compound interest by beginning to save as early as possible, according to an industry expert.
Robin Ellison, head of strategic development for pensions at law firm Pinsent Masons, was sympathetic of the fact that young adults in the UK may have to prioritise their financial commitments such as paying off their student loans or the rent ahead of savings.
However, there are a number of benefits for those that can find the funds to begin saving from an early age.
"It's really good if they can save money early on, because the effect of compound interest is unbelievable," he said.
"So the sooner they start the better it is, but it's very understandable that they have other priorities."
Mr Ellison added that, although young people "need to think longer-term", the rising retirement age means they will have even more time to prepare for their financial futures.
Recent figures from the Pension Protection Fund found that the UK's private pension deficit has increased to a record £255.2 billion, with businesses being put under increasing pressure to plug the funding gap.
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