Ten-year delay in pension savings 'costs £40,000'

A UK worker hoping to earn a retirement income of £20,000 per annum at the age of 60 would have to contribute twice as much each month if they start saving at 35. According to L&G, a 25-year old would have to contribute £205 per month to get an income of £20,000 at age 60, assuming 7% average investment return. However, delaying contributions until the age of 30 requires monthly payments of £292 for the same level of income, while waiting until age 35 increases payments to £423. L&G’s wealth policy director, Adrian Boulding, says: “When you are 25 or 30, retirement seems like a long time...