When you reach state pension age you will be given an income from the government however this is often not enough. It is common for workplace pensions where a percentage of your income will be deposited into a pension account which you can withdraw once you retire. It is recommended that you add in extra into your pension pot too.
Citizens bank recommends that by 40 having 3 times your current income to have enough by retirement age.
From the age of 25 saving at least 15% of you annual income can help you save for the future.
If your annual income is £25,000 you would save £3750 in a year.
What to save for
When you retire you will still have necessities to pay for as well as enjoying life so it’s worth saving little at a time when you are young so this is all possible later on.
- Making sure you can afford rent and bills
- Paying for any necessary travel such as getting to an appointment
- Paying for any medication outside of the NHS
- Making sure you can join in with friends and family
Factors that affect retirement saving
- You annual income
- The age you want to retire
- The rising cost of living
- Your plans during retirement and average spending
