A recent study has suggested that more than half of over 50s regret not saving into their pensions sooner, and a huge 64% wish they had contributed more into their retirement savings at an earlier stage. The study by Aviva also found that a quarter of participants only started paying into their pension after they turned 30 because they did not feel financially stable enough to contribute any sooner.
Has auto-enrolment solved the problem?
Although there has been a much greater uptake in pensions since the introduction of auto-enrolment (where your employer must contribute when you earn more than £10,000), there are concerns that many are presuming this will be sufficient and not considering thoroughly the amount they must be paying in to achieve the retirement they desire. Auto-enrolment is something that over 50s did not have as an option in their younger years and is definitely seen as a positive step, but it is still vital to ensure you are carefully forward planning for your retirement before it’s too late.
How much should I be contributing?
Whilst there is a minimum amount that must be paid in with auto enrolment (8% with 3% coming from your employer), it should certainly not be presumed that this is a sufficient amount to give you a comfortable retirement.
The level of payments you should be making into your pension now will differ dramatically on the type of retirement you would like to achieve and how comfortably you would like to live in retirement, the best way to work this out is to sit down with a financial planning expert who will know the exact questions to ask to make sure your retirement plans will be appropriate for you. It is also important to regularly review your plans and consider whether any other changes in circumstances are going to impact your retirement plans.
Get in touch
If you would like advice or assistance on retirement planning, get in touch with a member of our financial planning team by emailing enquiries@pmm.co.uk or calling 01254 679131.
A comment to note that the article does not constitute personalised advice and that advice should be sought before taking any action.
