Before deciding how much should go towards your pension, why not check out our on-line HBOS Pension Planner? It gives at a glance information on Scheme benefits and the value of HBOS contributions and tax breaks.
The Scheme’s flexible structure means that you can choose a contribution level that suits you – starting from 2% of your basic salary. Obviously the more that is contributed, the more you will receive at retirement. Just contact $Group Pensions stating the contribution level that you would like to apply.
Here are some points that you should consider:
How Much Will I Need To Live On?
Think about how your lifestyle will be different when you retire. The chances are that your outgoings will be lower than they are at present.
For example your mortgage, credit cards and other loans may have been paid off and the costs of going to work, such as public transport or car parking, will cease. But don’t forget to factor in any costs that might come from having more spare time on your hands, such as hobbies, interests or holidays.
Save More and Start Early
The basic rule is that the more you contribute to your individual retirement account - and the sooner you start - the greater the potential benefits when you retire.
Look at the Whole Picture
Remember to take other savings and pensions you may have into account.
These may include long term savings plans, investments and also pension benefits from previous employers. Also don’t forget the state pension, which could add around a further £4,300 a year.
Balance the Present and the Future
Whilst it will boost your retirement benefits if you save more, you have to keep your current needs in mind.
For example, it might make sense for you to pay off debts now, whilst paying a lower contribution towards your retirement, and then increase your contributions at a future date. That way, you could still take advantage of HBOS contributions now and later on.
Use the Online Pension Planner
Have a look at our easy to use Pension Planner which will show how your benefits from the Scheme might look when you retire.
The Planner also gives an estimate of how much you need to save to retire at a certain age. And because the figures are in today’s prices, you can easily relate them to your current salary.
