You Are Not Saving Enough Into Your Pension

News | by Niamh Docherty
Retirement jar

One of the most common questions from clients and friends is “how much should I be saving towards my retirement?”

In short, the answer is as much as you possibly can and as early as you can.

Final salary pensions (guaranteed income for life based on your final or average salary) are disappearing and the responsibility of saving for retirement is in the hands of an individual rather than their employers.

Typically 25%+ is saved into a final salary scheme (mostly by their employer) compared to the average saving of 8% p.a. into a defined contribution pension (a pot built up through contributions and investment performance).

Ageing populations continue to put more pressure on governments and the hope of state backed guaranteed income in retirement is diminishing.

Making early pension contributions allows you to make full use of compound interest. This means even small savings early on can be more important than larger savings later. The earlier you start, the higher chance you will have of building up a substantial pot that can be used to fund your 30+ years of retirement.

Many people leave it too late to work out if they are on target to meet their goal and have to either lower their standard of living or work for a few more years than they have planned.

Contact [email protected] today to conduct a financial health check on your circumstances and ensure that you are on track to achieve your retirement goals.

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