Why start saving for your retirement now? Research has shown that for every ten years you wait to start saving for retirement, you may need to pay in double to get the same pension outcome.


If you start saving £100 a month at age 25, assuming a 5% annual return, you could have £153,238 by the time you turn 65. If you wait until age 45, even if you put £200 a month into your pension, by 65 you’d only have £82,549 as the interest wouldn’t have as long to accrue. So time is on your side.


State Pension age is getting further away, and retirements are longer

If you’re in your 20s now, you’ll be able to start claiming your State Pension at 68. With the ever increasing life expectancy you could spend 20 years or even longer in retirement. You need to start putting money away now to make sure you have enough to fund your chosen lifestyle for the length of your retirement.


You can withdraw a private pension from age 55, so if your savings and investments are more successful than expected, you might even be able to retire sooner than planned—who doesn’t dream about that?


Saving for retirement in your 20s and 30s

  • Make the most of your employer contributions

If you’re enrolled in a workplace pension scheme, consider contributing whatever is required to get the maximum employer contribution.

  • Create a regular savings plan

If you’re self-employed or simply want to pay more into your pension, you can pay in and get tax relief on anything up to the annual limit of £40,000 or to 100% of your earnings, whichever is lower.

  • Regularly review your pension contributions

As your circumstances change, remember to review your contributions and increase, stop or restart them at any time.

  • Up your payments in line with salary increases

Think about increasing your pension contributions by the same percentage when you receive a pay rise.

  • Streamline your pension

Combine your pension pots from previous workplace schemes to make them easier to track, but be careful of any charges that may apply.

  • Consider investing to boost your retirement income

A portfolio of investments could help you to live the lifestyle you hope for in your retirement, just remember that the value of investments can go down as well as up, and you may get back less than you invest.


Get in touch to discuss your existing pension provisions and to get some impartial advice on your financial plans.


Remember that the value of investments can fall as well as rise, so you may get back less than you invest. This information is not a personal recommendation for any particular product, service or course of action.