Savings Series: Saving for retirement

A guide to retirement savings by Furness Building Society

Many Brits only truly begin to understand the importance of having a plan for retirement in later life. But having the appropriate funds ready for use in your senior years, when grocery and household bills are still landing, is vital. For many, knowing how to start saving for retirement, or even how much to set aside, can be a bit of a struggle.

In this step-by-step guide, we’ll walk you through everything you need to know about saving for retirement, including how focused your savings should be at each stage in your life. We’ll also offer some top tips to enable you to utilise all you can and maximise your money along the way.

Saving for retirement by age

Saving for retirement at 20

In your twenties, the prospect of saving for your latter years seems far from important. You may well feel you’ve only just stepped foot into the workplace and having a monthly salary may be a new phenomenon.

As you begin to navigate life’s expenditure, it’s important to consider building a rainy day fund, slowly but surely, until you’ve hit around 6+ months' worth of living costs. It's a process of creating a habit at this stage and will help you to kickstart those funds. At the very least, make sure you’ve enrolled in your workplace’s pension scheme and utilise your company's full match limit.

Saving for retirement at 30

Saving for retirement at 40

Saving for retirement at 50

Saving for retirement at 60

Saving for retirement FAQs

Why is it important to start saving for retirement early?

Whilst the largest deposits of money might be more readily available to you in later life (when average incomes are typically higher), there’s still real value in building collateral early on.

Though they may be small, savings in your twenties can grow when invested within an account offering you interest. You may even find that those smaller sums eventually grow to larger amounts than your later deposits of cash further down the line. The sooner you can start, the better.

Check out the various savings accounts around via the Savings Hub.

How soon should you prepare for retirement?

How do I build a retirement fund if I’m self-employed?

How much should I save for retirement?

What is the 5% rule in retirement?

Next steps

Whether you’re just starting out and laying down some retirement plans, or you’re a little further on the way, we hope this article has inspired you to keep saving.

Get in touch to discuss your retirement plans and see how our savings, bonds and ISAs can help you on your way to financial freedom in your later years. Send us a message, call our team on 0800 834 312 or visit us in branch to find out more about how our savings accounts can help you.