Saving for retirement
Plan for a good life after work
We’re all generally living longer, which is great news. But financing a retirement that could last 20, 30 or even 40 years can feel daunting. However, regularly putting aside money while you’re working can be one of the most effective ways to tackle this retirement challenge.
Your workplace pension aims to make saving for retirement easy and straightforward. Plus, it offers investment options that can give your money the potential to grow so hopefully, you’ll end up with more money than you put in.
The sooner you start, the bigger the potential impact on your retirement outlook.
First things first
To get your pension journey off on the right foot, here are some important steps:
1. Set a retirement income target
The closer you are to retirement the more likely you are to know how much income you’ll need to cover your regular outgoings when you stop working. If you have longer to go, it’s still good to have an idea of what you’re aiming for. You can then review this each year as retirement gets closer.
2. Know what you already have
Your pension pot can be made up of a number of different arrangements, including employer pensions, personal pensions – and don’t forget the State Pension. Work out what you already have and it's projected value -– you may find this on your yearly statement or by contacting investment providers and previous employers. You’ll then have more of an idea if you’re on track to achieve your target income.
To help keep things simple you may wish to consolidate your plans in one place.
3. Take action
Now you can start putting plans into action:
Don't forget the value of an investment can fall as well as rise and isn't guaranteed. The final value of your pension pot when you come to take benefits may be less than has been paid in.