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With pensions and retirement often overlooked by young adults, Jamie Mourant, a senior investment manager at Titan Wealth, joined Meg Winton to discuss why starting early is key to futureproofing your finances
IF you’re a young adult, pension planning probably isn’t top of your mind right now. But according to Jamie, the earlier you start planning, the stronger your financial future will be.
Something that feels so far away might not be a priority for some, but it should come as no surprise that getting organised ahead of time is the best way to set yourself up for the future.
Jamie, who has over a decade of experience in the financial services industry and has been with Titan Wealth for nearly three years, emphasises a key concept: compound interest. A young person himself, Jamie was keen to stress that there was no better time to start planning for retirement than now so you could take advantage of this powerful phenomenon.
“Compounding is basically interest on interest earned,” he explained. “If you start with £100 and earn 5% over a year, that becomes £105. Leave it there, and the next 5% is on the £105, not just your original £100. The longer that goes on, the better it becomes.”
This principle, he said, is at the heart of long-term wealth building – and the earlier you harness it, the more powerful it becomes.
But Jamie was quick to acknowledge that many young people often feel unmotivated to invest.
“There’s a lack of urgency, lack of funding and lack of understanding,” he said.
“I get it. I’ve been in that same situation; I want to spend the money on a holiday to go and see the world or buy some new clothes or go out at the weekend.”
Jamie’s top tip? Set up a direct debit to an investment account right after payday. This way, you’re less likely to treat your savings as spending money.
Waiting to invest later in life, he warned, means playing catch-up – and potentially taking on more risk to try and bridge the gap. It also means missing out on a second powerful concept: pound cost averaging.
“When investing over the long term, if you add money slowly on a regular basis, what’s happening in markets matters less. It’s designed to protect the investor against volatility within markets,” he explained.
You don’t need to invest everything overnight, just take small steps to start building momentum
Jamie Mourant
Having this approach to saving early in life, Jamie said, was a way to build financial discipline.
“It can help teach the younger generations to prioritise saving over the long term. The pension age is continually increasing, so I think youngsters really need to take that into consideration.”
Jamie also addressed the common misconception that investing required a large upfront sum. This, he says, “just isn’t true”.
There are platforms that accepted initial investments as low as £10 or £15, but Jamie warned of the importance of understanding the fees involved.
“If you were investing £100, and there was a fee charged by the platform for £12.50, your investment would have to go up 12.5% before you even made your money back,” he explained.
Another barrier? Fear of risk.
“There’s risk in everything you do,” Jamie said. “But the key is to manage it, whether that’s by diversifying your investments or holding a variety of asset classes.”
He said consulting a professional was always a wise move, especially for those unsure about where to begin or how to match investments to their goals.
Jamie urged investors – young and old alike – to look beyond traditional savings accounts and resist relying on a single asset class in order to help reduce volatility and help weather market shifts.
Instead, he advocated for diversification as a way to balance risk and return, smooth out market ups and downs, and build resilience into your portfolio. A risk-aware approach doesn’t mean avoiding risk entirely but rather managing it smartly.
A well-diversified strategy, he says, can include a mix of assets such as stocks, bonds, property and inflation-linked securities. Gold, he adds, also holds up well in an inflationary environment.
“It’s about spreading your risk – not putting all your eggs in one basket,” he said.
Inflation and the rising cost of living aren’t just economic buzzwords – they’re everyday realities and the younger generation is no stranger to either. Jamie pointed to the pandemic, global supply chain breakdowns, geopolitical tensions and tariffs as key inflation drivers in recent years.
With inflation unlikely to subside soon, Jamie warned against taking on excessive debt or becoming “too overleveraged.” Instead, he advised planning with inflation in mind – not only by keeping borrowing under control but by choosing assets that can hold or grow in value as prices rise.
Diversification isn’t just about risk, he added. It’s also about protecting your purchasing power over time.
A popular asset that has lured in many young investors hoping for quick wins is cryptocurrency. But, as an investor in crypto himself, Jamie noted its extreme fluctuations.
“A 15-20% swing in a day, in an hour, isn’t normal. So, don’t go and try and shoot out the lights and take bigger risks,” he warned.
Jamie also stressed the importance of tapping into workplace pensions. “It’s an absolute must – even if you’re only contributing the minimum. You’re getting free money through employer contributions. Don’t leave it on the table.”
So, where should young people start?
Jamie said starting as early as possible was best because of the “power of compounding”.
To start, he recommended getting into a habit – however small.
“Time flies. You don’t need to invest everything overnight, just take small steps to start building momentum,” he added.
Second, build an emergency fund. As a starting point, Jamie suggested saving three to six months’ worth of salary to cover unexpected costs.
Third, with interest rates higher than ever before for many young investors, Jamie advised approaching personal finances, particularly debt, strategically.
“Interest rates have skyrocketed. Prioritise paying off high-interest debt quickly so you’re not saddled with lifelong repayments.”
And finally, never stop learning.
“I would encourage people to try and educate themselves,” said Jamie. “You have to find a way of learning that you enjoy. The more you understand, the more empowered you’ll feel.”
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