ARE YOU SAVING ENOUGH?

HERE’S how pension savings compare for a 25-year-old earning £26,500 and retiring at the age of 67.

SAVING 8% of full earnings (5% worker, 3% boss) Monthly retirement income £395 = 18% of salary. Add State Pension at 32% of salary = Total income 51% of salary

SAVING 9% of full earnings (6% worker, 3% boss) Monthly retirement income £444 = 21% of salary. Add State Pension at 32% of salary = Total income 53% of salary

SAVING 13% of full earnings (10% worker, 3% boss) Monthly retirement income £640 = 30% of salary. Add State Pension at 32% of salary = Total income 62% of salary

SAVING Auto Enrolment minimums but increasing worker contribution by 1% extra each year for 12 years Monthly retirement income £865 = 40% of salary. Add State Pension at 32% of salary = Total income 72% of salary

BASED on salary rising 3% per annum, inflation at 2% and investment growth at 5% per annum. Annuity rate at 3.5% and State Pension increasing in line with earnings.