19 October 2010
Recent analysis by Fidelity has identified that people who wait
until 2012 for the start of auto-enrolment to save for retirement
could be £100,000 worse off.
According to Fidelity's calculations, a 25 year old who saves
£300 each month could be £123,000 better off starting
by saving now rather then waiting until 2012.
Moreover, if they can only save £100 a month, they could
still be £41,000 better off at retirement.
Julian Webb, head of the UK defined contribution section at
Fidelity said:
"Starting early simply gives people the opportunity to build a
bigger pot by retirement - it also puts people in a better position
to recover from falls in stock markets and interest rates.
"I'd suggest anyone with access to a company pension scheme but
who decided not to join should reconsider that decision now.
"Sometimes it helps to remember that company pensions usually
include free money.
"With the average employer contributing 6.1 per cent of gross
salary to a private pension scheme, anyone on the average wage of
£25,428 could get, free, an extra £129 a month."
The Pensions Advisory Service has produced a booklet on saving
for retirement, to view this click here
