You are here: Home - Retirement - Retirement planning - News -

Turn £6 a week into a £60,000 windfall

Written by:
Savers could add £60,000 to their retirement pot by contributing an extra 1% of their salary into their pension.

Analysis by Fidelity International found that a 30-year-old today, earning a £30,000 salary, could end up with an additional £58,273 in their retirement fund by the time they reached 68 by increasing their pension contributions by just 1%. That assumes wage growth of 3.75% and investment returns of 5% after fees.

The extra contribution would cost just £6 a week, according to Fidelity.

A 30-year-old who saved an extra 2% could see their pension pot boosted by £116,500.

Fidelity also calculated a 40-year-old earning £40,000 who contributed an extra 1% of their salary could have an additional £37,169 in their retirement savings by the time they reach 68 or more than £74,000 if they could contribute an extra 2%.

Ed Monk, associate director for personal investing at Fidelity, said: “None of us really know how long we’ll live or what spending demands will be placed upon us during retirement, which could last many decades. Then there’s the unpredictability of financial markets which will also partly determine the income we have to live on in retirement.

“With all that uncertainty, it really does make sense to save as much as you can afford in to your pension so you can give yourself the best chance of enjoying a comfortable retirement. The good news is that even the smallest increases can give your retirement savings a massive boost.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Thousands overpaid through government self-employment grant

Thousands of people in receipt of the government’s Self-employment Income Support Scheme (SEISS) have been ove...
Thousands overpaid through government self-employment grant

Nurses to be offered ‘earn and learn’ route

A new government package worth £172m will help to train thousands more nursing degree apprentices.
Nurses to be offered ‘earn and learn’ route

Student loans thresholds to rise for most borrowers from April

The government has released its annual update to the interest rates and thresholds of income contingent studen...
Student loans thresholds to rise for most borrowers from April

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week

Read previous post:
Wyelands Bank launches two best buy savings deals

Wyelands Bank has shot to the top of the short-term fixed rate best buy tables with two new deals. But...