For children and teenagers, saving for retirement is a tricky concept – after all, they’re not even on the career ladder yet, so the idea of putting money away for a date more than 50 years in the future may seem excessive or even unnecessary. However, like many financial topics, there are huge advantages to learning these lessons early. We asked Russell Winnard, Director of Programmes and Services at Young Money, how to broach the subject.
Why is it so important?
“Saving for retirement is probably the biggest investment your children are ever going to make,” says Russell. “But it may not feel like that at the beginning – and seeing a proportion of their income seemingly disappear when they finally start earning may not feel like it’s in their best interests.” That’s why learning this early on is key – because the longer that money is invested, the harder it will work for them – and why speaking to your children about pensions and retirement is essential for their financial education. “The timelines involved are vast, but just like savings and other types of investments, these are concepts that are important for young people to grasp in order for them to reap future benefits,” says Russell.
Read full article here: https://natwest.mymoneysense.com/parents/articles/how-to-talk-to-your-children-about-pensions-and-retirement/