Starting to save for your future
If you're in your 20s, retirement might seem like it's a lifetime away.
The fact is that tomorrow comes around sooner than you think. So, by saving more now it could lead to you to having a better chance of enjoying the future you want. Taking action now could make retirement a lot more enjoyable when it does come along.
Transcript for video Starting to save
Pension planning? That’s something you can worry about later?
The fact is that tomorrow comes around sooner than you think.
So by saving money now it could lead to you having a better chance of enjoying the future you want.
So, where do I begin?
First, find out what you already have, and what you could have when you retire. There’s the state pension, or course….
This is the current weekly state pension for a single person. You need to have 35 years National Insurance Contributions to get this much, which is the full amount. Wouldn’t want to live on that? Maybe not.
So, what other money could 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 from 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.
Don’t forget that your employer will probably also be contributing themselves. Both tax relief and your employer’s contributions increase your pension without costing you anything.
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 paid 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.
Next, think about what you’re going to need when you’ve finished 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.
What can you do now?
1. Begin by thinking about the kind of retirement you want for yourself
When you reach retirement age:
- Do you think you'll want to travel?
- What sort of activities and hobbies do you think you'll enjoy?
- Will you be financially supporting anyone else?
Our Shape my Future tool can help you visualise your retirement >
2. Start to consider how you'll fund your retirement
Make a retirement plan
3. Set yourself some goals – think about what age you want to retire, how much income you want, whether you'll do any part-time work.
- Think about how much you might need to save.
- Also consider how much you can afford to save now.
Remember, even if you think you can't afford to save much, as little as £50 or £100 per month will help build your retirement fund.
Return to your plan regularly to check on your progress.
The Retirement Planner can help you estimate the value of your pension when you retire >
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Email: pensions@wes.gdst.net
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