12 Mar 2020
The cost of living is high and it’s getting more and more difficult to balance your budget, let alone find money to supplement your private pension plan.
• Two in three workers are not saving enough for retirement
• One in three expect to carry on working after retirement
• One in five is relying on their spouses’ pension or an inheritance (dailymail.co.uk)
These figures are disturbing. Making small sacrifices could change the stats in your favour.
Let’s take an easy everyday example.
A 25-year-old worker earning £24 000 a year contributes 8% of their salary (£160 a month) to a pension pot over 40 years with a 5% investment return per year and annual increase of 3%.
This equals a pension pot at retirement of around £381 844
Average cup of take out coffee is £2-50. If he/she gives up four days of take out coffee a week = £10. That’s £40 pounds a month extra to contribute to their pension.
This would increase their pension pot by almost 25% to around £477 367
That’s over £95 000 extra just for giving up take out coffee.
Sacrificing a mere cup of coffee a few times a week could bolster your pension without breaking the bank.
Chat to your deVere Acuma adviser about the benefits of a small increase to your pension pot or starting a new private pension plan. [email protected]
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.