What age did you start paying in to a pension?

[Legoeverywhere92]

I'm 27 with a 4 year old who starts school next September so currently unable to put anything away and always opted out of pension contributions at work. I know I get a few years of N.I credits from child benefit but I'd like to retire with something decent so I'm not left in the same position as my mother who never worked and gets £113/week state pension (that's nothing).

When did you start saving, and how much did you put away per month?

Any tips on savings or good websites on saving for a pension/annuities etc?

I've been paying since I was 16 (now 30) have a very good salary now and pay in an additional 15% on top of my standard contributions.

When I got my first "proper job" (as I class it). I was 25.

My tip is to increase the percentage you save every April. We normally get a slight increase in tax free allowance and some people might get a (tiny) pay rise so you don't really notice the increase.

Including my employers contribution I now pay 20% of my salary into my pension. I'm am in low paid sector and part-time but paying in for so long is starting to make a difference to my pension fund.

We've also started saving £20 pcm for our two DC (13 and 9) we've been saving for 25 months.

Will hopefully increase that over time and at some point they might start saving money into the pension too.

OP you should look up stakeholder pensions. They might suit you. Low monthly contributions and low fees. A few providers.

I started when I was 18, part time work all through college and uni - I wasn’t able to join until 18.

Then 21-23 in a company scheme. I was just shy of 2 years so was able to withdraw it (subject to tax) when I changed company. I wouldn’t normally advise that, but it allowed me to buy a fiat which saved me on rent and rose in value.

For the next 10 years, company pension nothing more, as it was Final Salary and very good.

After that, it became a part CARE DB part DC scheme, leaving a hole in pre ious projection. So about the last 10 years I have put every pay rise into a private pension. So now I contribute quite a lot - with the aim that I can retire earlier.

I was going to post a saying but it’s been done... the best time to start was 20 years ago, the second best time is now.

It’s an individual thing though. I’d prioritise buying a flat over contributing to a pension, for example. I’d rather have a secure paid off house and small pension, than a larger pension and be renting.

@BacktoMA thanks, MA

So, is that an average across the pay scale? So, for example if you are a higher earner you get a better employer contribution than a lower earner? Or is it standardised across the pay scale?

I started a personal pension when I was 26, in 1988. I only put about £100/month in. Never worked for a company that offered any sort of pension and have been self-employed for almost 20 years. About 3 yrs ago started paying £200/month into a new one. Together they'll be worth bugger all when I retire.

@violinrosa I think it's about 26% for most people, what'll differ is your contribution, that varies depending on your on pay scale, the more you earn the more you have to contribute. That's quite easy to find online if you google CS alpha employee contribution rates.

Thanks, @BacktoMA.

Will do some hunting

For those paying £300+ per month, do you have any spare to play with? or do you live frugally?

I earn a lot. Luckily. And I'm sensible, not frugal as such. Sensible car, don't do holidays costing thousands, take my own lunch to work, no monthly subscription TV etc.

And I've not always been able to pay as much in but I initially focused on clearing my mortgage.

I make as much use of the tax advantages I can.

Looked into sipp but the £100 I would put away per month, actually gives me back £90 after fees, even with the tax position changing my £100 per month into £125. (that was the lowest fees available.)

This is bonkers. My SIPP has over £50k in it and costs £7.50 per quarter. It's invested mainly in Vanguard LifeStrategy, 60% equity, accumulating, which has a total cost itself of .22%.

Vanguard have just brought out their own SIPP which I think might be lower fees than my current one, I need to look into it.
However, for small sums, SIPPS don't make as much sense, you can use a stakeholder from, say, L&G, or Standard Life, those have reasonable fees.

I was 16. Joined the company final salary scheme. 20 years on I have approx £500k built up now. With some good projections.

@Ratbagcatbag

Final salary schemes don't have "sums built up" nor "projections", so either it's a defined contribution scheme, or some unusual scheme, or you need to look at it again because what you've said sounds like nonsense.

23, my first job after graduating. At the time it seemed absurd but my gran was one of those people who wouldn’t turn on the heating until there was frost of the grass, and I didn’t want to be like that.

The two financial decisions I’m most grateful for are buying a house and contributing to a pension. Retirement with a decent pension and paid off mortgage is the only way to be comfortable.

Ok. Maybe my wording is wrong.

And when I mean projection I mean roughly what I can expect to get when I retire. With all the caveats of investments going up and down.

I can see what my pot is currently worth though (again with usual caveats) which is showing £500k.

I have a pension. I've been in it 20 years and it's a good one. 🤷🏼‍♀️

29. I have been in it 17 years I pay 10% of my salary in and currently would get a lump sum and £4,000 per year from age 60 and a £1000 more approx from 67 plus any more years I do (NHS scheme, different sections different retirement ages). A defined benefits scheme.

24 and very glad I did. I never saw it as optional really. How else will you live in retirement.

Will have enough pension to retire by 58.

Not until 30. I pay in 8% but I’m
Upping that in the NY to 10% and will up more as I earn more.

Hopefully we can pay off our mortgage early and use that for investments.

I’m afraid I’m banking on downsizing my house and working until I’m old.

23, as soon as I was in a job with an occupational pension scheme. I'm part time now due to childcare but still pay in.

18. I’m now 26 with the same employer and I pay 9%, they pay 11%. Pension forecast still looks crap 🤷‍♀️

I was about 24 and started putting in the default percentage, 5% I think, with my employers matching that amount.

Many years later, those early years contributions have increased massively in value thanks to compound interest.

Start as early as you can and put in as much as you can afford!

19 for me

Started at 23 at 7% a month. I just try to pretend it doesn't exist in the first place as it's a bit gutting not to have it now with childcare costs being so much.

With all the caveats of investments going up and down.

I can see what my pot is currently worth though (again with usual caveats) which is showing £500k.

It's not a final salary one then as they are not invested (as such).
It is worth knowing what type of pension you have.

34. I didn't have a workplace option before that and buried my head in the sand to be honest (had no pension advice or parents who encouraged me). I do however have some savings.