What matters most in determining your eventual retirement income when saving in a defined contribution pension? The answer is incredibly simple. It's all about saving as much you can, at your first opportunity, for as long as you can.
Pensions reform and automatic enrolment should go some way to helping people start saving. But automatic enrolment isn’t automatic engagement. We not only need people to start saving we need them to keep on saving. If they don’t they will lose out. Take Sarah, aged 35, who has the option of joining a scheme where both the employer and the member make a 4% contribution. AEGON’s calculations show if Sarah decides to leave after five years rather than stay in the scheme it will reduce her retirement income by a massive 76%. But it’s not just continuing to save. It’s continuing to save as...
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