Recommended contributions to pensions

sammd | 22:10 Mon 20th Feb 2006 | Business & Finance

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What is the recommended % contribution to a pension? I'm 25 and have been paying in 8.5% a month for a year (including mine and employers contributions). I know there's some different figures for depending at what age you start...

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WendyS

I believe the maximum contribution YOU can make to your pension fund (as opposed to your employer's contribution) is 15% of salary. My recommendation to you would be to pay in as much as you can afford as by the time you come to retire the State Pension scheme will be pretty worthless. Also, as you get nearer retirement age, you could get made redundant or suffer from ill health and have to retire early which could devastate your long term financial planning. So, if you can afford if give up that extra bottle of wine or some other luxury to pay a little extra into your pension you may be very glad you did in the long run.

sammd

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Thanks for the advice WendyS!

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