Is your work pension going to be enough to retire on?

Will you be able to live your dreams when you've finished with work?

You might need to set aside more than you expect – up to a fifth of your wages – if that's your goal. 

A recent report from the International Longevity Centre UK is recommending that people in their 20s starting work should save 18 per cent of what they earn into a pension to enjoy a comfortable retirement – much more than the 2 to 5% people generally save in a company scheme.

Do you know if you’re saving enough to allow you to do what you want to after you finish working?

Factors such as when you can retire, how much you can afford to live on, your goals, your state pension and how much your own pensions and savings contribute will all need to be assessed.

This can vary considerably; some people’s plans and aspirations are relatively low, and some are higher.

Getting professional financial advice – or at least checking over your pension plans with an independent expert – could make a big difference to what you’re due when you retire.

Independent financial advisers can:

  • Look closely at your pension(s) performance;
  • Help you decide on how to afford increased contributions, if they are needed;
  • Examine what charges are made each year, and the impact that might have;
  • Work out how your pension savings could do more work for you.
Independent financial advisers such as our trusted partner Wren Sterling can quickly spot if there’s a gap between your ambitions and your forecast income.

Financial adviser Barrie Storm said: “Your work pension fund is only one way of saving for retirement.

“Other choices depend on what you want to do with your money until retirement age. A pension defers your wages and has some tax relief advantages. ISAs have different tax implications."

Nottingham Building Society customer Bruce Lakin, 76, from Gedling, says a work pension is a good place to start saving for retirement, as it can offer benefits which can count for more than the money you retire on.

He started work as a youngster in a coal mine and went into retail, spending 22 years paying into a pension at furniture company MFI.

He said: “It isn’t just the pension you should think about but the other benefits, I was lucky enough to be included in private health care and share certificates each year. Then when I retired it gave me a lump sum at 65 and I get a pension off them each month too.

“You need something to add to the State Pension. With a work pension you can do things people on the basic pension just can’t do.”

The State Pension is a regular payment from the government that most people can claim when they reach State Pension age.

You can find out your State Pension age by using the calculator on the GOV.UK website.

A personal pension is a way of saving for your retirement where you make regular payments into your pension fund.

You can't tell in advance exactly how much pension you'll get because it depends on how much you pay in, how well your investments do and what charges you have to pay. If your investments underperform, you could end up with less money than you expect.

If you’d like to check over your options, we can introduce you to Wren Sterling, who can see you in a branch of The Nottingham or at home if you prefer.

* The levels, bases and reliefs from taxation will depend on the individual circumstances of the investor, and may be subject to change. The value of an investment and income from it can go down as well as up, investors may not get back the full amount invested.


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