Pensions – Start saving now!
The Sunday Times reveals some interesting figures on the cost of delay when starting saving towards your retirement.
If you want an annual income in retirement of the national average earnings (about £27,000), you might get around £8,300 from a State pension (dependent on your National Insurance record), so will have to save for the difference.
Figures produced by the Prudential estimate that if you are 25 and retire at age 68, you will need to save £262 each month to reach this target.
If you delay starting to age 35 then this figure increases to £437 per month.
If you delay starting to age 45 then it’s £794 per month.
Unless you have other plans for an income in retirement, pensions are one of the most effective way to save due to the tax advantages.
It’s never too late to start, but it will cost you more the longer you leave it!