Quizzes & Puzzles1 min ago
Pension
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What percentage of a 24-year-old's annual salary should be put into a pension? 2%; 12%; 25%.
Thanks.
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For more on marking an answer as the "Best Answer", please visit our FAQ.As much as possible. Having said that pension contributions are tax free (you don't even pay income tax on them) up to 15% so it's not really worth putting anything more directly into a pension.
Any additional money would be better inversted somewhere else.
So I'd say if you can afford it put in the full 15% or as close as possible.
Any additional money would be better inversted somewhere else.
So I'd say if you can afford it put in the full 15% or as close as possible.
I strongly agree. Pay in as much as you can afford, especially if you're in a Money Purchase (also known as Defined Contribution) scheme. The more you pay in during the early years, the more the value will hopefully build up. There is always a great temptation to leave pension planning until middle age. Sadly by then it is far too late to make up the deficit and many people have suffered the disappointment of having dreams of early retirement dissolve when they sit down to do the sum of how much they need to live on versus how much their pension will provide.
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