When it comes to saving for retirement, there are always options, no matter how late you leave it.
Increase your contributions
If you’re currently paying the minimum 8% (including tax relief and 3% employer’s contribution) into your workplace pension, consider increasing it. Making a few cuts elsewhere can help you find those much-needed funds.
Look at your State Pension entitlement
If you have made at least ten years’ National Insurance contributions (NICs), you will be entitled to some level of State Pension. The full rate New State Pension is currently £179.60 per week, or £9,339.20 per year, with eligibility reserved for those who have made 35 years’ worth of NICs. While the State Pension is not enough to live on, it will help boost your income during retirement.
Quantify your pensions (and any other assets)
When you look at the State Pension entitlements, they do serve as a wake-up call to engage with any other pension provision you have made. It’s likely, if you’ve moved jobs, you have accumulated pensions; these need to be quantified and the underlying investments assessed for diversity and suitability.
An ILC study2 revealed that pension savers who took advice for a five-year period between 2001 and 2006 accumulated nearly £50,000 more wealth on average (in pensions and financial assets) than those who only took advice at the beginning. It’s easy to justify the value of advice. 2 International Longevity Centre UK, 2019