"I'll save later!"
If your pension is something that you have never given much thought and feel that you need more knowledge about how to save and when, we have ten top tips to get you on the right track to planning your future.
As recent figures show, only 1 in 20 women are close to achieving their pension ambitions compared to 1 in 10 men.
Retirement by pensions and savings provider Aegon, have revealed that women also expect half the income of men in retirement, expecting just £24,000 against men’s £47,000
Women are also significantly less engaged with their pension, almost 46% have never checked the performance of their savings, compared to 36% of men who are also much more likely to check their pot more regularly.
The shortfall in financial preparations in women could be explained by a lower average salary, leading to average pension contributions of £175 each month which is half the £328 put away by men.
Aegon have launched Retiready, a revolutionary digital service set to transform the way the UK gets ready for retirement. Available to use on mobile, the service demonstrates how adjustments to pension contributions, planning and money management can make a big difference.
Personal Finance and Consumer Expert Sue Hayward's Top Ten Tips:
- New to pension saving? Work out how much you can afford to save each month.
- Do something. Opening a cash ISA is a good start.
- There's no "one size fits all" way to save for retirement. Think what's best for you, whether that's property, shares or a company scheme.
- Every penny counts. Pension contributions qualify for tax relief so £80 is worth £100 for basic rate taxpayers.
- Keep track of how your investments are performing.
- Get a pension update. If you’ve moved jobs, you may have small amounts stuck in different funds. The Pension Tracing Service can help with this.
- Maximise your annual ISA allowance. From July you can pay in £15,000.
- Don’t dip into retirement savings; the money’s there for a reason.
- Property rental can provide a pension income but relying on downsizing for your nest egg could prove tricky if you can’t sell when you want to.
- Find out your readiness score to see how prepared you are for retirement.
Sue Hayward added: "Aside from a lack of surplus cash, I think the blunt truth is most of us simply don’t know where to start when it comes to saving for retirement. This is coupled with the fact that there’s a huge gap between what we ‘want’ in retirement, compared with how much we’re prepared to save. Most people want an annual income of £35,000, according to the Aegon UK Readiness Report, yet in reality they’re likely to get two thirds less; just £12,000.
David Macmillan, Managing Director, Aegon UK said: “We know that most of the UK population is falling short of their retirement objectives, and the gap between men and women must be closed. Especially concerning is that only three per cent showed an awareness of how to improve their financial position, and many aren’t reviewing savings enough to be aware of the shortfall they may face. It’s time for the pensions industry to lead the way in helping them find solutions and showing them that small steps can make a big difference.