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Lawyers warned about costs of delaying retirement planning

Research suggests that practitioners need a pension pot of £703,000 by the age of 65

13 January 2015

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Legal practitioners must save £700 per month from the age of 25 if they are to enjoy the retirement income they want.

The figures come from research carried out by financial services specialist, Wesleyan, which found that lawyers need to save the equivalent of £8,400 per year if they are to receive an annual income of £35,680.

This is the average sum which lawyers responding to the survey said they would need to live on in retirement.

Wesleyan's group sales and marketing director, Samantha Porter, commented: "We know from talking to our customers that many wish they had started saving earlier and starting younger is certainly the best way to build up a bigger retirement fund as your money has time to grow.

"With so many other expenses to consider when starting work however, including paying off student debt, it can be difficult to think about saving for retirement as it seems so far away. We would advise lawyers to try and put a little away every month as early as they can in their career and take proper financial guidance from someone who understands their career and can help them balance all of their financial needs."

The research also found that those who wait until they are 35 to start saving for their retirement will need to make contributions of £1,150 per month, or £13,800 per year.

The projections are made on the assumption that savers must have personally contributed £336,000 from their own income, with the pension pot growing to a target of £703,000 by the age of 65, at which point they purchase an annuity.

 

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Pensions