How_Money_Works_-_The_Facts_Visually_Explained

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PERSONAL FINANCE

Pensions and retirement

PENSION CONTRIBUTIONS

Calculations by a British consumer association reveal that

to achieve an annual pension income of £15,000 by age

68, savers starting at age 25 need to save £165 a month.

Starting at 35 would mean having to save £215 a month.

50 % of one’s age is

the percentage of salary to

save for retirement when

starting a pension.

RETIREMENT

FUND

A professional financial adviser

can calculate exactly how much an

individual needs to save to meet their

retirement goals, and offer advice on

the different types of pensions and

investments available.

£2,580

PER YEAR

MORTGAGE

AND CHILDREN

Very late starters

will

need to contribute large

percentages of their

salaries – 22.5% if aged 40

compared to 10% aged 20.

£

Saving at 50+

Savers aged over 50

may no longer be

paying a mortgage

but may still need

to balance pension

contributions with

other financial burdens,

such as paying their

children’s university

fees or caring for

elderly parents.

£3,864

PER YEAR

£

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40 45
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Very large contributions

70

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