Following our simple rule of thumb can help make saving for a pension from an early age much less intimidating
- 22% of millennials are unaware that they actually have a pension.
- 28% of millennials with a pension don't know what contributions are being made to their pension.
- 18% of millennials said having no idea how much they need to save was the third highest barrier preventing them from saving into a pension.
The value of advice
If you're unsure about your pension savings, it's a good idea to speak to an impartial financial adviser, who is able to help with making decisions when it comes to pension planning.
According to our What it's worth: revisiting the value of financial advice research report with the International Longevity Centre UK, those who took financial advice had, on average, around £47,000 more in total across their pension pot and other financial assets. For this research, the 'value of advice' is the difference between the financial circumstances of those who received financial advice and those who didn't.
How SUMS can help build pension savings
We've come up with a simple rule of thumb that could help millennials to build up their pension savings - they just need to do their SUMS:
S: Start saving as soon as they can, no matter how small the amount.
U: Up their pension contributions when given a pay rise.
M: Max out on any employer pension contributions available.
S: Speak to a financial adviser to help with their pension planning.
*The value of advice is the difference between the financial circumstances of those who received financial advice in the group of individuals and those who did not receive financial advice.
Find out more about planning for retirement
Tell us how much income you're looking for when you retire, give us a few personal details and we'll let you know if you're on track.
More on getting started with money
Top 10: tips to manage your money
Monitoring where our money’s going can have a big impact on our attitude to spending and how much we save. Read our tips to help get you started.
10 steps to building a financial plan
Having a financial plan in place early on can make it easier to manage your money further down the line.
Five ways to save for your first house deposit
Saving for a deposit is one of the biggest obstacles in getting onto the property ladder, but being aware of the options available may help you to reach the sum you need.
The hidden costs of buying a house
Buying a new home can be more expensive than you think. Use our guide to discover all the things you’ll need to budget for.
Easy steps to help you save for your future
Saving for the future can seem like a daunting task if you’re on a fixed budget or low income, but there are a number of simple steps you can take to help.
Should you take your debt more seriously?
Borrowing to make purchases can leave you paying the price long after you’ve forgotten what you bought.