Plan ahead and take control of your retiralage

We all have different ideas about the age at which we’d like to retire.

But when it comes to that magic number, will you be able to afford it, or will you have to continue working?

With life expectancy increasing, and a rising state pension age, people face the prospect of having to save more and/or working for longer to achieve the kind of retirement they want.

It was announced in July that the state pension age will rise from 67 to 68 from 2037.

But there are ways you can boost your chances of retiring when you want.

Alistair McQueen, head of savings and retirement at Aviva, says: “The most positive action we can take today is to take control of our savings; consider where we want to get to and understand from where we are starting. We can then plan how to bridge the gap.”

Here are his tips for taking control of when you retire:

Start saving early. The later you leave it, the more you will need to save each month to reach your target.

Save at least 12.5% of your salary towards your pension.

Aim to build a pension pot of at least 10 times your salary by the time you retire.

Saving into a workplace pension means your employer will also contribute. If you can, it often makes sense to maximise your contribution to maximise your employer’s boost.

Keep checking. Every year your pension provider will send you a statement. Use this information to check if you are on track for your retirement target.

Use free online tools. Many pension providers now allow you to monitor the value of your pension as often as you like.

Shop around. The services and the retirement incomes providers offer in return for your pension pot may differ.

If you’re affected by the state pension age rise, consider saving money to help fill the £8000 gap. To build £8000 over 20 years you would potentially need to save about £20 every month, when investment growth is factored in. This amount perhaps equates to buying two fewer coffees a week.