Four things to do now to save for retirement

Moneybox’s financial guidance research in 2024 showed that:

• 30% of people in the UK don’t have a workplace pension in place and do not intend to enroll in one.
• 18% don’t have a workplace pension but intend to enroll in one.
• 57% do not intend to open a personal pension to boost retirement savings.

Source: Jan 2024, Moneybox survey 4,000 adults

Having a pension is one way to invest for your future self and the more you invest, the more prepared you could be for retirement. The good news is, whether you have plenty of time on your side or retirement is peaking around the corner, there’s a lot you can do to improve your future income.

Start as soon as you can

You know the old saying, the best time to invest is when you were young – the second-best time is right now. Taking control of your financial future is a powerful step, no matter your age. The important thing is to get started, and the sooner you get going, the more time you’ll have to make a potential investment gain.

Let’s take the following example.* To illustrate, we’ll assume monthly contributions of £200 a month.

It’s worth noting that this doesn’t take into consideration any additional workplace contributions. To see how much you would need to save to retire, use our Pensions calculator.

The key takeaway isn’t about regret, but about recognising the power of consistent action. Even starting a little bit later with a focused approach can create a comfortable financial cushion.

Don’t forget how valuable tax relief is

When you contribute, the government essentially gives you back the income tax you’d have paid on that money. It’s like getting a “thank you” for planning your future.

Here’s a simple tip: for every £80 you put into your Moneybox Pension, the government adds a free £20. That’s a 25% top-up, pure and simple!

This isn’t just a small perk; it’s a significant advantage. In the world of retirement planning, this tax relief makes pensions a tax-efficient way to grow your nest egg.

Reclaim your “lost” pensions

Chances are, if you’ve worked in a few different jobs, you might have built up a collection of old workplace pensions that you’re no longer paying into. You’re not alone! Millions of people are sitting on forgotten retirement fundsFunds, also called ‘tracker funds’, are financial instruments that have been set up to match or ‘track’ the price of a market index. Investing in a fund lets you get exposure to different financial assets like shares and bonds, without having to buy them directly. – a staggering £31.1 billion worth, in fact!** Imagine what that could mean for your future.

Bringing those scattered pensions together into one streamlined pot could be a positive step towards taking charge of your retirement. With Moneybox, consolidating is simple, giving you greater control over where your pension is invested and a clear, unified view of your savings.

If you’re not sure where to start, use our Pension Provider Search Tool in-app. Simply let us know your employer’s name and when you worked there and we’ll do the rest.

Consider the product charges and benefits, and whether the profile of the investments offered matches your needs.

** Source: Pension Policy Institute: Lost Pensions 2024

Review your investments

If you’re already investing, it could be a good idea to review your level of risk and make sure this matches your plans. When investing for the future, you might be open to accepting more risk where you have time to ride out the market dips.

If you’ve not yet started investing, then now could be the time. It’s a great way to set yourself up for future retirement and when compared to cash saving, can have higher returns over time.

Explore investing

As with all investing, your capital is at risk. 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.

Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). 

When deciding whether to transfer your pension, it’s important to compare the charges, investment options & benefits between Moneybox and your old provider. Moneybox cannot accept a transfer from a pension your employer is currently paying into.

If you’re not sure whether the Moneybox Pension is right for you, we recommend you speak with an independent financial advisor.

Pension Provider Tool Search: Please note some of this information is gathered from a government database and may not reflect current provider information for all employers. We cannot always guarantee the accuracy of your search results where we’ve relied on this service to locate your pensions.

*To calculate how much your pension savings might be worth we have used the following assumptions: 

• Investments across all your pensions are assumed to grow at a rate of 5% each year, with total fees on those pots charged at 0.68% per year.

• All contributions you make into your Moneybox Personal Pension and/or workplace pension are eligible for tax relief from the government. 

• We have not taken into account the effect of inflation in your projected retirement savings.