6th December 2022
Having An Even Bigger Impact
Continuing on from our look at how abandoning pension contributions can have an even bigger impact than you realise. A person who began working at age 22 with an annual salary of £25,000 and paid the normal monthly auto-enrolment contributions (3% employer, 5% employee) would have a total retirement fund of £456,893 by age 68.
However, ceasing pension contributions at age 35 for just one year would result in a total pot of £444,129 – approximately £13,000 less than if contributions had been made continuously. A lengthier cessation of contributions would have an even greater impact.
Tomorrow we will look at the risk of sacrificing savings to cover everyday expenses. Please contact us for more information on how we can help protect your future financial well-being and the options available to you.
Source data:  Research conducted among a sample of c.2,600 contactable Standard Life customers
between 9–22 May 2022. Calculations are intended for the sole purpose of providing an illustration regarding the projection of savings and pensions. They should not be used with the intention to give an accurate representation of real world outcomes.