With all of the ongoing financial turmoil, what should you be doing about your pension? We ask the experts for advice on saving when you're young, and in later years.
When there is barely enough money at the end of the month, putting cash away for your old age does not always make the list of priorities.
Figures from the Pensions Management Institute (see links at bottom of page) show that more than 1-in-10 of us has already reduced pension contributions, while a further fifth are considering doing so, because immediate financial pressures are taking priority.
Financial wellbeing and retirement specialist Jonathan Watts-Lay, from Wealth at Work, calls the findings “alarming”.
“It’s vitally important for members to understand that opting out of their pension will have a huge impact in the long term,” he says. “They need to understand that reducing contributions now would make relatively small savings each month but the impact on their retirement savings to be used in later life will be dramatic.”
Do I really need to save now?
Saving into a pension, even when times are tough, allows you to benefit from contributions given by your employer, as well as tax breaks given by the government.