SJP Start saving
If you are employed, and eligible to join, then your company will automatically enrol you into the workplace pension scheme. This is a good thing, as it gets your retirement savings started straight away.
Your contributions will be collected through your salary each month, and your employer will also contribute towards your pension as well. You will still have choices in how your money is invested, so that you can tailor it to your investment preferences.
If you are self-employed, then it’s a good idea to start a pension as you start to build your business or career. The simplest way to get going is to speak to your financial adviser, and they will help get your plan off the ground.
Of course there are other ways that you can save for your retirement, such as using an ISA for example. There doesn’t have to be an either/or choice, it’s worth considering both, as they often provide different flexibilities and strengths that complement each other.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
Saving & budgeting tips
Getting into the savings habit can be hard to start with, especially when you have so many demands on your finances. So, here’s a few tips on budgeting for your longer term retirement savings:
- Save as soon as you’ve been paid - Work out how much you can afford to save into your pension, and do it as soon as you’ve been paid, don’t leave it until the end of the month.
- If you are employed, see how much your company will pay in - Often, the more you pay in, the more your employer will pay.
- Plan over the long term - Save what you can afford according to your earnings. Gradually increase your contributions as your earnings increase each year.
- Salary & bonus sacrifice - Many companies offer the option to do salary sacrifice. This is a way to pay your pension contributions through your gross salary which provides a National Insurance cost saving. You can often also elect to have part of any bonus paid into your pension in the same way. It’s a good way to get into the savings habit.
- Review your situation - Your situation will change many times (changing jobs, new house, career breaks), which can all affect your pension contributions. Review your savings annually to help keep you stay on track, and budget accordingly.
Achieving your pension savings goals
Salary sacrifice, investing for your future, compounding and pound cost averaging are all aspects to investing in your pension that could help you achieve your goals.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief generally depends on individual circumstances.
Should you have a pension or ISA, or both?
Understanding the risks with your investment choices
When making decisions on how and where to invest, one of the most important questions to consider is about risk. How much is right for you?