Starting a pension in your 50s can still build substantial savings

Summarised from 2 outlets · Updated 19 Oct, 06:19 · Archive

People in their 50s can still accumulate meaningful pension savings before reaching state pension age.

People in their 50s can still accumulate substantial pension savings, with 17 years remaining until state pension age of 67. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, estimates that contributing £300 per month to a pension could grow to around £96,000 by state pension age, benefiting from investment compounding. Smaller contributions will also make a difference.

Employer contributions provide additional help. By law, workers must contribute a minimum of 5 per cent of qualifying earnings to a workplace pension, and employers must contribute 3 per cent. Pension tax relief also provides government top-ups: basic rate taxpayers receive £20 in tax relief for every £80 they contribute, making a total saving of £100. People aged 22 to state pension age earning over £10,000 yearly are automatically enrolled into workplace pensions, though those earning less can opt in.

Ms Morrissey said: 'If you don't believe you have any pensions, then make a start. There's always things you can do to improve your retirement planning.' She added that employer contributions 'can also make a big difference' to retirement savings.

How it is being reported

• I want to retire at 60 – do I have to tell my pension provider, and are there fees?There are a number of things to consider before starting to draw from your retirement potThe i Paper · 19 Oct, 06:00
• Starting a pension in your 50s: it’s never too late to save for retirementStarting a pension in your 50s is easy and still offers time to grow savings using employer top-ups, tax relief, tracked lost pots, salary sacrifice, and eligible over-60s benefits.The Mirror · 17 Oct, 07:04

In this story: Helen Morrissey · Hargreaves Lansdown

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