Students urged to save for the future
16/08/2006
Students should start to save for the future by cutting down on one pint a day, new research has shown.
According to Fidelity International, if the class of 1998 started saving £1.65 per day into a pension fund, it would now be worth £6,400.
This sum would be expected to grow to around £50,000 by the time they retire, even without contributing another penny, the investment company suggests.
The research highlights that the earlier an individual starts saving, the more their pound is worth
"Our research shows the potential value of every pound invested diminishes rapidly as an individual gets older," said Simon Fraser, president of institutional business at Fidelity International.
"The message is simple - the earlier you start saving the more you will have in later life."
Commenting on this year's students, he indicated that "financial planning has never been so critical as when students leave school".
"While their own retirement will seem like a lifetime away, the earlier students start to save, the better," he added.
Research released yesterday by NatWest shows that sixth formers leaving school this year expect to pay £33,512 for a three-year degree.
This figure, which includes the new top-up tuition fees, is up £4,900 on last year, the bank indicates.
According to Fidelity International, if the class of 1998 started saving £1.65 per day into a pension fund, it would now be worth £6,400.
This sum would be expected to grow to around £50,000 by the time they retire, even without contributing another penny, the investment company suggests.
The research highlights that the earlier an individual starts saving, the more their pound is worth
"Our research shows the potential value of every pound invested diminishes rapidly as an individual gets older," said Simon Fraser, president of institutional business at Fidelity International.
"The message is simple - the earlier you start saving the more you will have in later life."
Commenting on this year's students, he indicated that "financial planning has never been so critical as when students leave school".
"While their own retirement will seem like a lifetime away, the earlier students start to save, the better," he added.
Research released yesterday by NatWest shows that sixth formers leaving school this year expect to pay £33,512 for a three-year degree.
This figure, which includes the new top-up tuition fees, is up £4,900 on last year, the bank indicates.
