Overview
- Consistently saving £275 a month from age 22 could build about £560,000 by age 67 on a 5% annual return, according to Mr MoneyJar in partnership with Plum.
- That projected pot is roughly £20,000 above the Pension and Lifetime Savings Association’s 2025 minimum benchmark.
- Workplace pensions add employer contributions and tax relief, which can materially lift long-term returns.
- A Lifetime ISA offers a 25% government bonus on contributions up to £1,000 per year for retirement or a first home.
- Advisers caution that poor fund choice, early withdrawals, and the inclusion of pensions in estates for inheritance tax from April 2027 can erode outcomes, with one example showing tax on a £30,000 withdrawal falling from £16,500 to £4,500 by waiting until eligible age.