Why start now?

Remember, it's not just your money that will be going in. You get extra money from BT and tax benefits from the Government. And, no matter what age you start, this all adds up.

These figures are an example to show what saving £100 a month could give you when you retire - and the impact of starting saving sooner rather than later. The example assumes that you make payments through SMART pensions (also called salary exchange). 

If you think you're not saving enough, please don't panic. It's never too late to start saving and there's lots you can do to get the most from your pension.

Why start a pension now?

Starting early makes sense. Your money has more time to grow, and you'll get more money from BT and tax benefits from the Government.

The longer you leave it - the more you will have to save each month to get the kind of retirement lifestyle you would like.

Starting at age 25 retiring in 40 years Starting at age 35 retiring in 30 years Starting at age 45 retiring in 20 years
Starting at age 25 retiring in 40 years Starting at age 35 retiring in 30 years Starting at age 45 retiring in 20 years
...if you exchanged £100 a month, and increased your payments by 3% a year, this is how much you would have paid by the time you retired:
£90,481 £57,090 £32,244
…and if BT matched your saving, they would have paid in:
£90,481 £57,090 £32,244
So your pension savings would be worth:
£212,000 £129,000 £70,100
…and by exchanging £100 a month, this is how much taxable income you could end up with each year in retirement in today's prices (taking future inflation into account).
£10,900 £6,780 £3,770

Important information & assumptions

These figures are illustrations only to demonstrate potential fund growth, and the pension income you might get when you retire.

We’ve made some assumptions: that the tax and regulatory regime impacting pensions doesn’t change based on our understanding of these as at April 2018; that your payments increase by 3% p.a.; that your employer matches the total monthly contributions and that you’ll retire at 65. We’ve assumed that your investments will grow at 7% per annum (you may get more or less than that) and that your annual charges will be 1%. Nothing is guaranteed.

We’ve also assumed that at retirement your pension payments will not increase, and if you die within 5 years of getting your pension, we’ll continue to pay it until the end of that 5 year period. We've also assumed that at retirement you didn't take any tax free cash and used all your pension savings to buy an annuity.