Most people don’t think about personal pensions or retiring, never mind saving towards it. Hopefully the table below shows you why you need to think about it.
The table shows what you would need to save if you wanted a £20,000 a year pension income in retirement.
If you currently have no savings and are 35, you need to save at least £404 a month to achieve around £20,000 a year if you decided to retire at 68. That’s over 20% of your income a month.
The concerning figure shows that if you are 45, you need to be saving almost 50% of your income to pay for a reasonable retirement, or face the prospect of working well into your 70’s.
However, if you are 25, that figure drops to just over 10% of your salary for the rest of your working life, a manageable amount, so it is extremely important to start saving as soon as you can.
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This article is for general information only. It is not personal advice and it is not a recommendation. The value of investments and the income from them can fall as well as rise and you may get back less than you invested. Past performance is not a reliable indicator of future results. Tax treatment depends on individual circumstances and may change. Fernleigh Wearden & Company Ltd is authorised and regulated by the Financial Conduct Authority, firm reference number 929372.
