Starting to save for your future

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, of 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 might want to start putting aside in a bank or building society account, or even an ISA.

You may already be saving into a bank or an ISA for shorter term needs like a house or car. If you are able to do so and can afford to, consider adding more into your pension to benefit from the tax relief.

Next, if you have a workplace pension, check how much is being paid in each month.

Alongside contributions from your employer, one of the benefits of a workplace pension is that you’ll 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 savings will cost you £80 from your take home pay.

If your payments are made through a salary sacrifice arrangement with your employer you’ll also benefit from National Insurance savings.

You need to remember that your pension savings are invested to try and help them grow, and, as with any investment, the value can go down as well as up and you may get back less than has been paid in.

Next, think about how much income you will 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.

If you want to make changes to your workplace pension you can do this through your MyWorkplace account.

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.