Starting to save for my future
Pension Planning: The Early Years
Pension planning? Isn’t that something you can worry about later?
The fact is that tomorrow comes around sooner than you think, so by saving more now it could lead to you having a better chance of you enjoying the future you want.
So, where do you begin?
First, find out what you already have, and what you could have when you retire.
There’s the State Pension, of course…
For a single person, the current full State Pension is £168.60 per week. You need to have made 35 years National Insurance contributions to get this. Wouldn’t want to live on that?. Maybe not. So, what other money would you have to live on?
Think about any money you’re saving in a bank or building society account, or an ISA. Factor that in.
Next, if you have a workplace pension, check how much is being paid in each month.
The benefit of a workplace pension is that you will normally be eligible for tax relief from the government on your personal contributions. So, if you're a basic rate tax payer, every £100 which goes into your pension will cost you £80 from your take home pay.
Next, think about what you’re going to need when you’ve finished working. To maintain living standards at retirement, most people will need an annual income of between 50% and 80% of what they were earning when they were working.
To help with retirement planning visit our website. You’ll find videos, calculators and online tools. Our Shape My Future tool can help you get an idea what your future could look like, and what you can do to make changes now.
You need to remember that your pension money is invested to try and help it grow – and, as with any investment, the value can go down as well as up and you may get back less than you put in.
If you want to join or make changes to your workplace pension just get in touch with your employer.
So in summary, find out what you’ve already got; plan how much you might need - and then take action.
Remember, if you really want to make a difference to your future, there’s no time like the present to act.