Savings boost of 15% needed for young people to retire early

L&G highlights ‘power’ of compound growth when pension saving

Holly Roach
clock • 1 min read

Young workers need a 15% boost to their savings if they want to retire early, research by Legal & General (L&G) reveals.

The research showed 17% of savers aged between 22 and 32 hope to retire before aged 60 with 70% expecting to retire before the current state pension age. As a result, savers in this age group would need an additional £312 a month on top of the average 8% contributions to their pension pot, representing a nearly 15% increase of monthly income towards their pension. L&G also pointed to the "power" of compound growth, suggesting if those aged 22 to 32 put £30 more away per month, they could end up with an additional £100,000 in their pension pot. L&G managing director of workplace sav...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Do you really think the young are bypassing advice by choice?

Do you really think the young are bypassing advice by choice?

We could use a bit more empathy when it comes to future clients

Hope Coumbe
clock 20 May 2024 • 4 min read
Industry calls for an interest rate drop of 5% from Bank of England

Industry calls for an interest rate drop of 5% from Bank of England

The monetary policy committee will have its next meeting on 20 June

Hope Coumbe
clock 20 May 2024 • 1 min read
Property inheritance figures paint bleak tax picture for millennials

Property inheritance figures paint bleak tax picture for millennials

Millennials on course for an ‘inheritance tax bombshell’

Sahar Nazir
clock 20 May 2024 • 2 min read