Start Pension Savings as Soon as Possible, L&G Advise

Britons must start saving by their mid-20s if they are to receive a comfortable retirement income, new figures from Legal & General have shown.

According to the insurer, in order to achieve a retirement income of £20,000 per year by the age of 60, 25-year-olds starting to save today need to save around £205 in a pension plan. 35-year-olds, on the other hand, require more than double that amount: £423.

Therefore, Legal & General has issued a call to youngsters to begin saving for their retirements as soon as possible. Adrian Boulding, the firm's wealth policy director, added: "When you are 25 or 30, retirement seems like a long time away but if people begin to save even a relatively modest amount they can look forward to a much more comfortable retirement.

"Funding your pensions can be expensive as you may live a long time after you retire. By starting your pension early you can reduce the risk of having to pay larger sums in later years, just to retain a reasonable quality of life."

Referring to recent price rises for day-to-day items, which has seen inflation rise to an above-target 3.8 percent, Mr Boulding commented: "With household budgets feeling squeezed, there is a danger that pension contributions might be delayed or suspended as people focus on the short term rather than the long term to ease the cost of everyday living.

"However, delaying your pension contributions can be very expensive. I can't stress highly enough that the early contributions are the most valuable ones, as they enjoy the longest period of investment growth."