We all know the scene when the penny drops for Carrie Bradshaw in Sex And The City. She has spent all her money on amazing shoes but she can’t afford to buy a flat to put them in!!

Is there a Carey Bradshaw moment brewing for us all in retirement? I read in The Financial Times last weekend that nearly half of all women age 25-39 are not saving for retirement. This is SCARY!! The researchers of the study estimate this to be around 2.9m women not saving for retirement.

I don’t know what the solution is because presumably these people are still being really sensible and are still saving a huge amount but it is being set aside for house deposits. This really worries me. Here are 3 little things you need to know about saving for your retirement from a young age:

Start Early

The earlier you start the better off you will be. Here is a table to demonstrate:

Starting Age Monthly Gross Pension Contribution Pension Pot At Age 65 Amount Invested In Total
20 £150 £232,445 £81,000
30 £150 £142,064 £63,000
40 £150 £79,806 £45,000


Early Risk

Take as much risk as you feel comfortable with and decrease as you get older. Definitely assess this ten years before you retire

Retirement Plan

Get a plan – most people hugely estimate what you need to have set aside in retirement. AS a general rule of thumb you should be saving at least half your age as a percentage of your income. For example if you are 26, you should put 13% of your income into a pension. If you are 30 the figure should be 15%. Also for every £100,000 you have saved in your pension, you should aim to take out approximately £4,00 per annum.

Share share share

Please share this with as many 20 year olds that you know and encourage them to save (even just a small amount) from as young as possible.


Miss Lolly xx

p.s. did you know that as a parent you can save on your kid’s behalf into a pension and get tax relief? Just don’t pay in more than £3,600 per annum.