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How Much Should I Be Saving


Calculate Your Retirement Fund Value

As a general rule of thumb, if you aim to start drawing your pension at age 65, you should contribute an annual percentage of your earnings equivalent to half your age when you start saving. If you start saving when you are 20, for example, consider putting aside at least 10% of your salary until retirement, while if you start at 40, consider at least 20%; either as annual lump sums or regular monthly savings.

You should also make sure that this percentage is maintained as your earnings increase. You may find it useful to speak to your Financial Advisor to calculate your retirement fund value.

Not everyone will retire at 65, so you should also consider how long you might be retired. A 40‐year‐old planning to retire at 65 would have the same time to retirement as a 30‐year‐old wanting to retire at 55. But the 30 year old would need to save much more each month, or hope that their investments grow much faster, as their retirement should be much longer.

Because of this they would receive lower annuity rates. They would also not get any state pension for at least the first eleven years of their retirement.

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