When should I start saving?
Like many other people, you might feel that retirement is too far away to think about. Maybe you think you can’t afford to save for the future now when there are so many other things you have to pay for every day.
But the truth is that the earlier you start saving for your retirement, the more money you’re likely to have to enjoy yourself – and pay the bills – when you retire.
Remember:
- Don't worry if you can only spare a few pounds a week at first. The important thing to bear in mind is that the sooner you start, the more time you will have to earn interest on your savings - and you can always increase your payments later on
- As your earnings increase, think about increasing your pension payments
How much will I need when I retire?
The State Pension will give you a basic income when you retire, but it's your responsibility to decide on the kind of lifestyle you want in retirement, and what you need to do to achieve it.
Everyone’s circumstances are different so it’s difficult to know exactly how much each person will need. For most people, the decision depends on how much you can afford to save. Some costs of living may be lower when you retire – such as taxes, no fares to work and no National Insurance contributions. You may have paid off your mortgage and you may no longer be supporting a family. On the other hand, you will have more leisure time and other costs, such as heating and healthcare, may increase.