Making Money Pension expert: The one thing you must sort out this year
23 snips
Jan 16, 2025 Tom McPhail, a pensions expert at The Lang Cat and former Head of Policy at Hargreaves Lansdown, shares crucial insights on retirement planning. He emphasizes making pensions a priority this year, discusses calculating retirement needs, and the importance of engaging with pension plans. Tom unpacks the benefits of salary sacrifice and tax relief, and highlights the need for a diversified savings approach, including ISAs. He also navigates the complexities of choosing investment strategies and the role of state pensions in today’s changing demographic landscape.
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Calculate Retirement Needs
- Use online pension calculators to estimate retirement needs and savings.
- Revisit these calculators regularly as circumstances change.
Rule of Thumb for Savings
- A simple rule of thumb for retirement savings is to save half your age as a percentage of your income.
- However, online calculators offer a more accurate assessment.
Total Retirement Savings
- Aim for a total retirement savings rate of at least 10% of your income, including employer contributions.
- Consider ISAs, property, or business ownership as part of your retirement strategy.