Pension savings are seen as a long-term investment, so reviewing your contributions isn’t always about paying more – sometimes it’s about seeing if you can continue to pay something, so that you’re able to continue building up money for your future, while you prioritise other important things.
How to decide what to contribute
The short answer to this is that it’s different for everyone, because it’s all about affordability. However, here are some tips to help you think about what you can afford, and what you might need in the future.
- Use the online modeller to work out what sort of income you might need in the future. Some estimates say the average required income in retirement is around half your salary. That might not be quite right for you, but working out what you might need can be a good starting point when it comes to working out what you’ll need to pay in to achieve it.
- Look at your employer’s scheme guide to find out whether if you pay in a bit more, will your employer will pay more in too. If you decrease your contribution, this could also impact the amount you receive from your employer.
How to change your contributions
If you want to change how much you’re paying into the Scheme, you can log into your Retirement Savings Account and make any changes there. Once you have logged in, you will see a direct link on the My Pension tile.
If you haven’t registered to review your account online, it’s a good idea to do that as soon as you can – it’s an easy and flexible way to manage your retirement savings, and make changes when you need to, no matter where you are. Register here.
Remember: When you’re reviewing your contribution levels, it’s important to bear in mind the limits set by the Government. You can find out more about those here.