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Retirement Thoughts

February 22nd, 2015 at 09:50 am

Creditcardfree's post the other day about retirement got me thinking.

I've been contributing 2% of my pay towards a pension since I was 20. I wouldn't have considered it normally at the time, but my manager, who was about five years older, told me he was contributing so I should do it. When I signed up, I told dh who followed a few months later. My employer matches my contribution.

In the last year or so I see that it's now compulsory - I might be wrong - to join your workplace pension. I'm sure the HMRC had a lot of adverts out about it.

I'm by no means expecting a great pension considering my little savings. I don't know what age I will retire. I know one way to increase your pension is to use your ISA savings where you are allowed to save 15k per tax year (Apr-Apr). I am a long way off from this. I need to get rid of debt first and get myself sorted out.

I just wanted to put this out there because I was thinking about it.

3 Responses to “Retirement Thoughts”

  1. PatientSaver Says:

    Does your employer contribute a % of your contributions? If you haven't reached the limit at which they do that, I'd be throwing as much as I possibly could toward that. 2% is a very small amount to contribute. I know you have debt, but if you could swing it, I would try bumping up your contribution to 5%. 30 years from now, you will be thanking yourself for doing it.

  2. snafu Says:

    Sarah it was really smart to start contributing to your retirement at age 20. Whatever the sum it needs years and years of compounding to increase in value. Adding matching sums from employer is FRee money. Do you know what the money gets invested in? Can you call HR and ask and also ask what the fee called MER [Management Expense Rate] ? You likely get an income tax deduction for your contribution. Each country operates differently.

  3. FrugalTexan75 Says:

    I think that's great that you started contributing at 20! Even if it is a small amount, it's much more than many people do at that age.

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