Individuals should aim to save 15% of their salary according to an Independent Review of Retirement Income (IRRI).
Amrit Sandhu, Wealth Manager at AAG, explains why it is important to start thinking about your retirement today.
“Saving 15% of your salary may seem inconceivable” says Amrit. “However, with the launch of the government’s auto enrolment scheme, employees will, in due course, contribute a minimum of 5% of their salaries into a pension, with their employers obliged to contribute 3%.”
“Whilst this is a positive step and will put you closer to meeting your lifestyle requirements in the future, it is still 7% less than it should be.”
“Taking control of your wealth and having a financial plan in place, can help to reduce the significant gap in how you’re saving for your future.”
The changes in legislation mean we are going to be more reliant upon personal pensions, but what if there is not enough in your pot for the lifestyle you want to have? What do you dream of doing and how can you make that a reality? Even if you start putting away smaller amounts now, it has to be more beneficial than doing nothing!
“Although it may seem like some time off, the sooner you start saving, the easier it will be to give yourself a more comfortable standard of living in the future.” Amrit concludes.