Building your savings for the future
Around 20 years to go
If you're aged between 35 and 45, you're likely to have plenty to think about already. Your career, your home, your family... busy times.
You've probably also thought about the need to provide for your retirement. You may have a pension, perhaps arranged through your work.
At the moment, retirement planning is more likely to be at the back of your mind than the front. But this is the stage in life when many people could benefit from taking a brief ‘time out' to make sure their retirement plans are on track.
Transcript for video as above
When you get around to thinking about your finances, what sort of things spring to mind?
A mortgage or a car loan? Looking after a family? Paying the bills? Probably not pensions, though.
But the fact is that tomorrow comes around sooner than most of us think…. So where do you begin?
First, find out what you already have, and what you could have when you retire. Your annual pension statement can help here.
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’re saving in a bank 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 post- tax pay. This tax relief is limited to the amount you earn in the tax year, or the level of annual allowance whichever is lower. Next, think about what you are going to need when you’ve finished working.
Think about whether you can afford to save some extra money from your salary. Putting aside just a little now could still make a big difference later.
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.
That’s why it’s important to keep a close eye on the value of your pension and other investments.
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.
And remember, however busy you may be right now, it’s worth taking time out to think about your future…while there’s still time to make a difference to it!
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.
Tax and state benefits shown are for the 2024/2025 tax year. They depend on your individual circumstances and may change. This presentation should not be regarded as giving any form of financial or investment advice. You should not make your decision on the basis of this recording alone. If you have any doubts whether the product is suitable for your needs, you should contact a financial adviser for advice. An adviser may charge for their services.
The value of your pension could go down as well as up and you could get back less than the amount paid in.
What can you do now?
1. Understand whether you're on schedule to achieve the kind of income you're looking for when you retire.
Review your retirement plan and see if you need to change anything.
- Can you afford to contribute more to your pension?
- If you have more than one pension, would it make sense to combine them?
It's worth spending some time to consider what you can do, find out about what you need to think about and whether it is the right action for you to take. If you are not sure, you can speak to a financial adviser. They may make a charge for their services, but it could be money well spent.
2. Contact your existing pension provider(s) to find out what your pension fund(s) are worth.
3. Look at all your financial arrangements together.
- Your pension is just one of the ways in which you can provide for your retirement. To get the full picture, think about things such as the value of your property and any savings accounts you may have.
Contact us
Got a question? We are here to help
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Contact your employer
- You can contact Nationwide’s Pension Services team (part of People Services).
- You’ll need to create a Service Request on PeopleCloud Help Desk and select ‘Pensions’ as the category.
Guidance and Advice
This site does not provide financial advice.