The importance of your pension
Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.
No matter how far away you are from retiring, thinking about your pension is vitally important. Your contribution could have a big impact on how comfortable you are when you stop working, with how much money you put away now dictating the amount of income you’ll have once retired. Read the recent results from our ‘saving for retirement’ quiz to get an idea of expectations and reality.
The younger you are when you start saving for retirement, the better. The general population is living longer, meaning you’ll probably need to build a larger pension pot. With advances in medicine and technology, it could be the case that you’ll live for decades beyond retiring. How are you going to fund your lifestyle when you don’t have your monthly salary coming in?
You can make a difference to your retirement fund today. Think about what percentage of your salary you are currently contributing. Can you afford to increase this?
Remember, with an Auto Enrolment workplace pension your minimum contribution will rise from 1% to 3% from April 2018. The following year, April 2019, the minimum contribution will become 5%. Why not get ahead of this and up your contribution now? The more you contribute now, the greater potential you’ll have for a more comfortable retirement.
To get an idea of how much you may need in retirement, use our award-winning technology by logging-in on tpinvestor.com or downloading the True Potential Investor app. This will help you to set your goal, by taking into consideration how much you can invest each month and how long you’ll be doing this for until retirement.
Do more with your money, explore Personal Pensions and other investment options on tpinvestor.com
