The longer you pay into your pension, and the more you and your employer pay in, the more you will have when you need it
Saving enough for retirement is easy if you start when you are 18. But all is not lost if you start later. He used it in 1895 in his novel of that name to travel nearly a million years into the future only to find humans were as unpleasant and divided as they are today. If there was a time machine now millions of people should be travelling back to their twenties to start paying into a pension. Because the longer you pay in the more you will have in your sixties or seventies when you need it.
You can add another win if you pay higher-rate tax as more than one in eight of us does – because then the subsidy is 66.7 per cent. You pay £100 in out of your taxed income and in a roundabout way the Chancellor adds another £66.70. And it is £81.80 for a top rate 45 per cent taxpayer.. Everyone in work aged 22 to 65 who earns more than £10,000 a year must be automatically enrolled into a pension by their boss.
These are less than half the generally accepted minimum needed, which is 15 per cent of your pay shared between you and your employer. The Bank of England, which is very good at sums, pays – wait for it – 52 per cent of salaries into its gold standard pension scheme. But for most people with a standard pension pot, job number one is to go and see your boss and say you really would like them to pay more into your pension. Perhaps matching your 5 per cent contributions now and then both of you could raise that year by year to 8 per cent each by, say, 2030.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Is your iPhone Pro 15 overheating? A fix is on its wayDon't panic!
Read more »
Christian Horner on prospect of Max Verstappen beating Lewis Hamilton to title No.8Christian Horner said Max Verstappen is still 'a huge amount of distance away' from setting the all-time record for most championship wins.
Read more »
John Lewis shoppers praise 'game changing' £12.60 bra that 'doesn't dig in'Shoppers have been praising the 'comfortable' bra that still provides good support.
Read more »
Sharon White's turnaround plan ran into internal resistance at John LewisThe outgoing chair of John Lewis will be the shortest serving in the partnerships history. | ITV National News
Read more »