Finished studies, starting work…but what of the future?
01 September 2026The summer / early autumn sees the end of education for one cohort, and the start for others. Daunting at both ends as change occurs and hopefully opportunities appear ahead.
Wealth creation and saving for later life might not be at the top of the list as to what needs to be addressed; however, there is much to consider particularly if you have accumulated student debts from your recently ended studies.
Building future wealth does not have to be into a pension (although accepting an employer’s pension contribution is usually worthwhile). Other options, such as ISAs, or LISAs (Lifetime ISA) might work, and each individual might want to familiarise themselves with the options where applicable.
Buying into future wealth accumulation has improved significantly with technology, allowing us all to use apps to view and interrogate funds and fund values as they accumulate, and I think this is a real advantage and an engagement plus point. Planning for your future does require engagement, and this is to some extent the risk with the success of auto-enrolment. Many perceive that they have ‘ticked the box’ for retirement savings, when the reality is likely to see many thousands of individuals fall short of their needs and requirements in the future.
Most investments, and particularly pensions, usually require two elements to add real value for the future, namely money and time. For graduates, the former (money) is invariably in short supply, and the latter (time) is bountiful. With the minimum retirement age increasing from 55 to 57 from 2028 as an example, a good few decades are ahead to be able to build up benefits. Starting early with small amounts is usually a good strategy to accumulate future wealth, although this might be easier said than done.
If you are moving into employed work, have a look at the additional benefits being offered above the headline salary rate. What type of pension is on offer, and what is the employer contribution to pensions? Do they offer increases in employer contributions if you pay in a little more? This might be a ‘menu’ type offer allowing you to choose.
If you plan to head the self-employed route, please allow even a small contribution to a pension within your business budgeting. Small contributions over a long investment period can make a real difference.
And where possible, don’t forget to talk to parents and grandparents about their pensions (and how they work) is one opportunity, and they might also help with funding. They may of course have started a pension for you years back (worth a check!), and there might even be an unclaimed former Child Trust Fund or Junior ISA lying around from the past that might help.
We hope that the first foray into the workplace is a great success, which ever route you choose to take.
No individual advice is provided during the course of this blog.
Keith Churchouse FPFS
Director
CFP Chartered FCSI
Chartered Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.
