How much should I pay into my pension?

How you work this out is by figuring out how much you’d like to retire on (realistically), then working backward to how much you should be saving a month.

  • If you earn between £22,400 – £32,000 then the government suggests you aim to retire on 67%
  • If you earn between £32,000 – £51,300 then the government suggests you aim to retire on 60%
  • If you earn over £51,300 then the government suggests you aim to retire on 50%

The reason you need less as you won’t be paying nearly as many of your everyday expenses, commuting for example.

The good news is, all employers have to offer a workplace pension scheme and so depending on how generous your company is, your employer may contribute to your pension with every payment you make, helping you to save.


For example, the average UK salary is £24,500, which means you’d need 67% to retire comfortably, which is approx. £16,500 a year.

Using the above salary average as an example, if you started at aged 22, you’d need to be putting away between £50-450 a month in order to have £16,500 by the time you retire at the average age of 68. But this of course depends on how good your pension scheme is (the interest of the account/pot you put the money into to grow). Also, this figure doesn’t take into account how much your employer puts into the pot.

To make it simple, Money Saving Expert suggests taking the age you start your pension and halving it. Then put this percentage of your pre-tax salary aside each year until you retire.

So, how much…

To be honest, it depends, which we know is the most frustrating answer but it’s dependent on how much you can afford to put in (which is dependent on your monthly expenses), the type of lifestyle you have, the age you start to contribute and what kind of pension scheme you have (percentage increase wise). 

Info sourced from Aviva.

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