Whether you’re aiming for £1m at retirement or not, the important thing is to start saving as soon as you can. The sooner you start setting money aside in a pension, the more time your money has to compound – that’s when you earn a return on the gains from your original investment. So even small amounts set aside now have the potential to turn into something much greater in the future.
Here’s some examples of how you could build a £1m pension pot with Moneybox:
- If you started at age 20, you might have to contribute £317 each month to your pension (£301,860.79 set aside in total)
- Start aged 30 and you might contribute around £557 (£375,072.26 set aside in total)
- Start aged 40 and you might contribute around £1,051 (£467,289.86 set aside in total)
Pensions Operations Executive Paul Archen shares five more ways to get you well on your way to a healthy pension pot.
Contribution amounts are net of tax relief. Figures include the basic rate of tax relief, include fees, assume a 5% growth rate, and assume contributions increase 2% with inflation. They don’t take State Pension into account. Projections not guaranteed. Tax treatment depends on individual circumstances and may be subject to change in the future. You can only access your pension once you reach the minimum pension age.
As with all investing, your capital is at riskThe potential for loss. Usually, but not always, higher risk assets can have the potential for higher returns.. The value of your pension can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.
