It doesn’t pay to delay decisions regarding pensions and planning for your income in retirement. The reason for this is the later you leave it to start a pension, the more you are going to have to contribute each month.
If you want to retire with an annual income of £20,000 you may receive a State pension of about £8,700 per year, but this will depend upon your National Insurance record. This means that you will have to fund the difference through pensions, savings and other investments.
We’ve done some calculations based upon someone starting to save into a pension at age 25, 35 and 45. At age 25 you would need to contribute £298 into your pension every month, at age 35 this increases to £413 and at age 45 its £628 per month.
Pensions are an attractive way to save for retirement as they give access to professional fund managers and offer considerable tax benefits. Our Advisers, who provide financial advice in Sutton Coldfield and across the region, are expert at finding an appropriate pension plan for our clients and helping them towards a happy and comfortable retirement.
The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.