Prudential: Take advantage of employer's pension scheme

www.moneynews.co.uk > Pensions > Prudential: Take advantage of employer's pension scheme

Prudential: Take advantage of employer's pension scheme

Wed 30th Sep 2009

Prudential has told people to pay into their employer's pension scheme as early as possible to ensure that they can enjoy a good-quality retirement income.

Martyn Bogira, director of defined-contribution solutions at the company, pointed out that if you begin contributing when you are 40, then your optimum contribution is three times higher than when you are 18.

He claimed that even making very small contributions can make a big impact on your final return, so starting early is advisable.

His comments followed the publication of research which showed that, in order to receive a pension of two-thirds of the average national salary, a 40 year old would need to pay £728.06 a month until they retire.

Mr Bogira said: "The findings show very clearly that anyone earning an income should try to begin putting money into a pension as soon as possible as the cost of delay is considerable."

A recent report published by Prudential and the Pensions Policy Institute suggested that housing equity may play a bigger role in retirement income in the future.

Click here for more pensions news

Related News : Pensions
	Over-55s don't believe in paying for care, reveals Aviva
	East Midlands comes top in pension contributions
	Corporate pensions provider issues advice for businesses
	One third of workers have no pension, claims Prudential
	More than a third of Brits fail to reassess pension risk, claim experts
	Women protest at No 10 over proposed pension reforms
	Retirement age 'to be brought forward by ten years'
	Interest rates held at 0.5 per cent by Bank of England
	Pension contributions fall in recession, ONS reveals
	Equity release for retirement 'might not suite every household'

Related News : Prudential
	One third of workers have no pension, claims Prudential
	Falls in the stock market 'will not affect some retirement savings'
	Pensioners 'to lose millions in spending power over next 12 months'
	Prudential supports government pensions calculator move
	Prudential notes pensions calculator pattern
	State pension 'may not be enough to retire comfortably'
	Prudential warns that retirees could face a life below the poverty line
	Prudential highlights retirement calculator trend
	Prudential notes growing pensions calculator trend
	Prudential notes gender gap in pensions calculator in 2010