How Much Should I Have Saved by Now?
If you’ve ever asked yourself “How much should I have saved by now?” — you’re not alone.
Exclusive data from MoneyPlus reveals that 74% of people aged 45–60 worry about their financial future, with nearly a third admitting they’re relying on inheritance to fund their retirement.
Exclusive data by MoneyPlus reveals that 74% of 45-60 year olds state that they are worried about their financial situation in retirement, with nearly a third admitting they are relying on inheritance to support themselves later in life.
With the average retirement age in the UK currently at 66, Anel Andrew at MoneyPlus reveals how much age brackets 18-28, 29-44 and 45-60 should be saving each month, and have already saved.
UK RETIREMENT INCOME BENCHMARKS
This is what you should be saving annually for retirement, per person, according to the Pensions and Lifetime Savings Association (PLSA):
Minimum: £14,400 per year
Moderate: £31,300 per year
Comfortable: £43,100 per year
Minimum will cover the essentials with a few treats, moderate gives you more flexibility, where you can afford things like occasional holidays abroad, and comfortable affords more luxuries, including things like regular holidays and new cars every few years.
GENERATION Z (AGED 18 – 28)
Of the three age brackets, Generation Z are the ones who are the least dependent on inheritance – just under 23% said they were relying on in heritance for their retirement – but though they have the longest to wait, they are still just as concerned about their future, with nearly 62% saying they’re worried about what their financial situation will be when they retire.
A useful rule of thumb is to save half of your age as a percentage of your salary – for example, if you’re 20, aim for 10%. Even the smallest contributions add up over the next 40 years of work, so it’s always best to start as soon as you can.
For a ‘moderate’ retirement lifestyle:
| ‘Saved so far’ target: | by late 20s, 0.5 – 1x your salary |
| Based on the UK average salary of £37,500) | £12,500 – £25,000 |
| Monthly saving target: | 8 – 12% of gross salary (including contributions from employer) |
MILLENIALS (AGED 29 – 44)
Millennials are in the prime years for earning, but are also in the peak expense years, from mortgages to childcare, and the rising cost of living is competing with how much they can save.
Pension contributions can be tempting to skip on tricky months, so it’s a good idea to automate them. If you get a pay rise, increase your pension contributions before you get too used to the additional money.
For a ‘moderate’ retirement lifestyle:
| ‘Saved so far’ target | Mid-30s: 1 – 2x salary Early 40s: 3 – 4x salary |
| Based on the UK average salary of £37,500 | £105,000 – £140,000 by age 40 |
| Monthly savings target | 15% of gross salary (including contributions from the employer) |
GENERATION X (AGED 45 – 60)
Unsurprisingly, Generation X are the most concerned about their retirement finances; these concerns are far more immediate and often compounded by financial pressure in their daily lives.
The focus for this age group should be clearing debts and maximising contributions. Many people in Gen X have worked for multiple employers throughout their career, meaning there could be forgotten pensions sitting untouched – you can use the government’s free Pension Tracing Service to find and consolidate them.
For a ‘moderate’ retirement lifestyle:
| ‘Saved so far’ target | 5 – 7x annual salary by mid-50s |
| Based on the UK average salary of £37,500) | £200,000 – £280,000 |
| Monthly saving target | £1,000 – £1,200 (Including contributions from employer, if starting to save at 50) |
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