Insufficient pension saving the top financial regret among the over 50s.
Not saving enough for retirement is the biggest money mistake the over 50s make, according to a new survey.
The deVere group carried out an international survey of those aged 50 and over about their money decisions. And failing to put more money aside for retirement was identified as the biggest financial error by over a third of those polled.
In second place, 27% felt that it was a mistake to manage their finances without professional advice.
Just under a fifth of respondents felt their biggest money mistake was letting emotions rule their investment decisions, while 11% pointed out a lack of diversification in their investment portfolios. Just 7% said they had failed to ensure they were adequately protected by insurance.
See how much money you'll have in retirement at a glance with lovemoney's new Plans app
Every penny counts
Starting your pension saving early – even if you’re only putting a small amount aside – can make a big difference to the size of your pension pot when you come to retire. As we wrote last week, the first pounds you save are the ones that work hardest.
To put that into context, the table below breaks down the final pension pot for a man earning £30,000 a year, saving 4% a month, depending on when he starts that saving habit. In this instance, 4% works out at just £100 a month, but as you can see, the final pension pot difference is significant.
|
Age of starting pension |
Final pension pot |
Tax-free cash |
Income per year |
|
25 |
£120,000 |
£30,000 |
£4,970 |
|
30 |
£103,000 |
£25,800 |
£4,330 |
|
35 |
£87,100 |
£21,800 |
£3,710 |
|
40 |
£71,800 |
£18,000 |
£3,100 |
|
45 |
£57,200 |
£14,300 |
£2,500 |
|
50 |
£43,200 |
£10,800 |
£1,910 |
Source: Hargreaves Lansdown pension calculator. Assumes average 5% annual growth and 1.5% management charge
If you want to keep on top of how your pension investments are performing and whether you’re on track for the retirement you want, you can make use of lovemoney’s new Plans app. Not only does it serve as a digital vault for all of your financial info, but you can also get an instant snapshot of exactly how much you’re worth.
See how much money you'll have in retirement at a glance with lovemoney's new Plans app
More on pensions:
How to take tax-free cash from your pension