Daily Express pensions article

ended 06. January 2022

A journalist at the Daily Express is after responses to the following two Qs:

  • What are the most common mistakes people make when planning for their retirement?
  • Is the 3.1% pension increase enough/fair?

No need for an essay. Just a few lines for each will do. Deadline is tight - 14:00 today!

4 responses from the Newspage community

Star Quote
"The most common mistakes are leaving it too late to build up a significant pension, underestimating how much should be saved towards retirement goals, and failing to take financial advice in advance of retirement. Another issue is underestimating how much non-essential expenditure is required during retirement. "The 3.1% rise is fair in context with low wage rises and the current state of the economy."
The biggest mistake people make when it comes to retirement planning is not starting saving soon enough, and not saving enough. People should join their employer's pension scheme as soon as they can and pay in as much as they can afford. The problem is that when you're in your twenties, retirement seems a long way off. But those years will fly by and you'll wish you started saving sooner.
"Not contributing enough. For example, if you would like to spend £30,000 per year in retirement for 30 years, that is a total expenditure of £900,000. Contributing £100 per month for 30 years is a total of only £36,000. Even with some decent growth it is not going to get you there. Be realistic about what needs to be put away for your future self, and start early."
The most common mistake is having no plan whatsoever. Most people stick their head in the sand when it comes to retirement. There are always more pressing things to worry about. But when people reach 60 they start to panic.