How much private pension will I get?
It’s difficult to say exactly how much private pension you’ll have when you retire, as it depends on a number of factors including:
- How much you pay into your pension pot — the more you contribute now, the more you’ll have in retirement.
- The performance of your pension — a pot with a greater level of risk tends to grow more quickly than a pot with a lower risk profile.
- The fees associated with your pension — the charges associated with your pension may reduce the amount you have available in retirement. This is especially true if you have multiple pension pots, where the fees you’re paying may total more than your pot grows.
- The age you start contributing — starting to contribute to your pension early will give you longer to generate the funds you need for retirement.
When considering how much you’ll need in retirement, remember that you can essentially ‘top-up’ your pension pot with your state pension. This is currently £122.30 per week, although the amount you receive depends on your personal circumstances. More information about your entitlements can be found on GOV.UK.
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