Starting a pension in my 40’s and what to do

Starting a pension in my 40’s and what to do

Starting a pension in my 40’s and what to do

At the age of 40, it is suggested that you have double your annual salary in your pension pot. If this isn’t you, do not fear, there is still time to build this up.

You can start taking your pension at the age of 55, but if you still have it in you to work, you could potentially be working for the next 30 – 35 years, which is still plenty of time to save for your future.

Fortunately, the auto-enrolment pension scheme came into play in 2012, which means that every employed individual will have a company-provided pension.

An example of this, is you put 5% of your salary into your pension pot, whilst your employer also contributes a percentage. Each employer is different, and some have the option to do lower or higher percentages. Some even come with further benefits such as dental and health insurance. So, either way, you will go into employment in your forties with some financial security.

The next step is working out how much you will need to save. If you are starting with nothing, if you save just under £500 a month up until you retire, this will allow you to live comfortably for 20 years. If you can save even more, then this is just an added bonus, but if this figure is daunting, then have no fear.

Your best bet is to get in touch with a financial advisor. They will be able to determine and calculate just what you need. Whether this is calculating what you need for your retirement to what you need to start saving now.

It should be noted that you need to be realistic going into saving in your forties, but it is definitely doable, with the right help. If you are sensible with your money from 40- 60 you can rest assured that by the time your retirement comes, you will have enough saved to live comfortably going forward.

Money stress is such a huge factor in our lives but seeking the right advice, really can put your mind at ease.

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.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.