Saving enough for your pension?

carrot cake

We're all living longer and the cost of retirement is increasing. Here are some simple tips to help you save enough for your pension, and ensure you enjoy a decent retirement income

CAPTION: Saving enough for your pension?

VOICEOVER: We’re all living longer, and the cost of retirement is increasing. For a decent retirement income, pay as much as possible into your pension early. The governments’ auto-enrolment programme is a good place to start. From [April] 2019, your employer pays 3% of your salary, topped up by your 5% contribution. You also get government tax relief, but these minimum contributions are hardly enough to see you through retirement.

However, there are several ways to boost your retirement pot.

You may be able to make higher contributions to your auto-enrolment scheme.

Join your company’s’ pension scheme, which could have higher contribution levels.

Additionally, save into a private or personal pension, but do not breach the governments’ £40,000 annual limit, or the £1.03 million lifetime allowance [2018/19 tax year], otherwise you could pay tax penalties.

Open an ISA, or check if you can put more into your current ISA.

Look into new schemes, like the Lifetime ISA.

How you increase your retirement income depends on your circumstances. Review your arrangements and check your savings regularly.

CAPTION: Find out more at royallondon.com.

Please note that the figures quoted in this animation in relation to the lifetime allowance were correct at the time of publishing in the 2018/19 tax year. The lifetime allowance for the 2019/20 tax year is £1.055 million, and you can find more information at GOV.UK

More on getting started with money