How Big Should My Pension Be at 50?

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How Big Should My Pension Be at 50?

Thinking about your pension doesn’t need to be a daunting task. If you have a rough idea of what you have in your current pot, then great, but if not, then there is still time to get your head around it. At the age of 50, you should be thinking about what you’ve put away so far and what you can contribute in your last few working years.

Most pensions can be taken out at the age of 55, but this is dependent on your policy. You may wish to retire at 55 and take the lot, or you may not be ready to give up working life just yet.

Both are purely circumstantial, and it’s figuring out what is best for you. At the age of 50, ideally, you would have wanted to save over 4 times your annual salary if you would like to retire comfortably. At this age, you should be considering putting 25% of your salary into your pension pot, if not more.

Luckily, in 2012, the auto-enrolment pension scheme came into place, which should ensure that every employed individual has some sort of pension in place. An example of this is yourself adding 5% of your income into your pot and your employer may then also contribute a percentage over 3%, depending on what you wish to add.

This can be reviewed on a yearly basis and altered if need be. Some individuals will get more benefits from their employer with the more they decide to put in. If you have reached 50 and feel you haven’t got enough saved; this still doesn’t have to be an issue.

Realistically, you will have to knuckle down and save a higher percentage of your wages, but this is completely doable with the right advice on hand. Money can be such a stressful factor in our lives, and it doesn’t need to be if treated in a way that it can be controlled.

If you want to reconsider your current financial circumstances or make any changes going forward, it is advised that you consult with a financial advisor to assess your situation. A financial advisor can help with assisting the calculations for your current pension pot, how much you may need going into retirement and what you can do each month to improve this. By getting this peace of mind can even help you have more clarity and understanding of pensions in general.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

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