An Innovative Way to Save for your Pension

Here at Prestige Tax and Trust Services, we’re anticipating a very long January. After all the festivities of Christmas and a good old party at New Year it’s likely that lots of people will struggle to make December’s wages stretch. But never fear! We have come up with a fantastic solution!

Every year we all try our best to come up with New Year’s resolutions that will benefit us and that we can stick to for the foreseeable future. Well, how about attempting a Dry January? We realise that might sound tough, but we’re certain that when you hear the plus points, you’ll be more than up for it!

Firstly, it’ll be great for your waistline. After weeks of over indulgence, we’re sure the majority of people will benefit from an easing off of alcohol. You’ll probably also see improvements in your skin, sleep patterns and ability to focus. But here’s the best bit…you’ll save money, and, if you follow our advice, a lot of money!

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Take an average 22-year-old man. If we assume he sticks to the recommended weekly consumption of 21 units, equivalent to nine pints of lager, and each of those pints costs £3.20, it adds up to a weekly spend of £28.80. That’s £125 every month.

Choosing to save this money can earn you a tidy lump sum every year, but the Prestige Tax and Trust Services team think the best idea is to invest that money into your future. Putting January’s alcohol money into a pension plan with a tax relief on top can earn to holder a sizeable profit for their retirement. If, for example, your savings grow by 6% every year and you retire at the age of 68, your pension pot will be a healthy £20,000 bigger than it would without the Dry January money.

Alternatively you could set aside £10 per month for the same cause and end up with roughly the same amount. It goes to show that a little saving really can make a BIG difference!

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