When should I start investing into a pension?

At EFG Harris Allday, our chartered investment managers actively manage the monies held within Self-Invested Personal Pensions (SIPPs) on behalf of many of their clients who are approaching retirement or already retired.

When considering your future lifestyle in retirement it’s important to start investing early. The state pension may not be enough to live off in retirement – encouraging indidivuals to start investing into a personal or workplace pension to supplement their future income.

The estimated income to live a moderate lifestyle in retirement starts from £23,300, but this extends up to £37,000 per year for a more comfortable standard of living. 

Depending on your age this may change in the future, as the cost of living is expected to increase each year. It is also important to factor in whether you have paid off any outstanding debts, such as a mortgage for example.

It’s never too late to start investing into a pension – though the older you become, the more challenging it can be to build a pension pot large enough to sustain a comfortable lifestyle. The earlier you start paying into your pension, the less you’ll need to save each month due to the benefits of compound interest.

Eligibility for automatic pension enrolment in the UK starts from age 22, for those in employement earning over £10,000 per year. Employees can join their workplace pension scheme and benefit from employer contributions at any age between 18-74, so long as they are earning over £6,240 per year.

For those who are not in paid employment, whether it is due to a career break, caring responsbilities or for personal reasons, you can still pay up to £3,600 into a personal pension each tax year and benefit from tax relief.

Next steps

Our chartered investment managers actively manage the monies held within Self-Invested Personal Pensions (SIPPs), working with clients either seeking to grow their funds, or supplement their income to achieve their desired lifestlye. Each Investment Manager has access to a wide selection of assets, with support from our dedicated in-house Research Team, allowing them to deliver a bespoke, well-diversifed investment portfolio in line with an individual’s investment time horizon and attitude to risk.

Our clients have direct access to the Investment Manager responsible for their portfolio, receiving a personalised service – which allows them to discuss requirements or carry out key changes over time.

If you would like to speak to an Investment Manager who can help to grow your pension funds before or throughout retirement, contact us at enquiries@efgha.com. A member of the team will be in touch.

We also work in partnership with a number Financial Advisers who support our clients with retirement planning. If this is something of interest, please contact your Investment Manager. 

Please note that EFG Harris Allday does not provide pension or tax advice. The value of your investment can fall as well as rise in value, and the income derived from it may fluctuate. You might get back less than you invest. Past performance is not a guide to the future.