Retirement
“ The point at which you skip those contributions matters . If you miss a year ’ s contributions at 55 , it is a lot less important than missing a year ’ s contributions at 25 ”
Tom McPhail Director of public affairs at the lang cat
says : “ The point at which you skip those contributions matters . If you miss a year ’ s contributions at 55 , it is a lot less important than missing a year ’ s contributions at 25 . The unfortunate message is that people in their 20s are those who lose most by opting out of their pension .” Yet this is the segment of society feeling the most pain from the cost-ofliving crisis .
In general , £ 1,000 invested at 25 could be expected to grow to around £ 7,360 by the age of 65 . The same £ 1,000 invested at 55 would only grow to £ 1,650 . AJ Bell points out that a 30-year-old with a £ 30,000 salary who opts out of their workplace pension scheme for just three years could see their potential retirement pot reduce by around £ 37,000 .
Issue 84 - May 2022 / 9 /