If you need a little more help, MoneyHelper’s budget planner can help you review your monthly spending and provide personalised tips on changes you could make.
Pension Wise, a service from MoneyHelper, is a free and impartial government service offering guidance about your retirement options. This service is available online at MoneyHelper or by phone on 0800 138 3944.
2. A strong safety net
Knowing your expenses could be covered in every eventuality is an important part of financial wellbeing. Yet, many people could only live off their cash savings for less than one month if they lost their job.
A good starting point to protect you from unexpected events is having an emergency fund, or some call it rainy-day savings. It should cover at least three months of your typical expenses.
To make saving into an emergency fund potentially easier – think about automating regular payments into your savings each month. You could use the principle of ‘paying yourself first’, for example on pay day, if you can afford to do so. Even adding a small amount each month will build up emergency savings over time.
3. Long-term savings
Saving money for your future is just as important as managing your money today. For many people, the amount they have saved is likely to be far too little to be able to live the lifestyle they’d like to achieve.
The MoneyHelper Pension calculator can give you a forecast of the likely pension income you’ll get when you retire. It also suggests a target retirement income to aim for, considering your current salary. Just remember, the value of your pension pot can fall as well as rise and isn’t guaranteed.
To help you manage your long-term savings, it’s good to have a clear idea of how much you’ll need in retirement. Our Retirement Income Planner tool could help you see if you’re saving enough for the lifestyle you want. If you’re not on track, you could look to save more or set targets to help you get back on course.
Saving for retirement as early as possible could make a real difference to your retirement savings.