EV highlights long-term benefits of saving during Pension Awareness Week
EV has marked Pension Awareness Week by showing how even small contributions can significantly grow over time, with £1 invested at age 20 potentially worth £23 in retirement.
Financial technology solutions provider EV has released analysis during Pension Awareness Week, running from 15th to 19th September, highlighting the power of long-term saving into a pension.
According to the figures, a 20-year-old investing £1 today could see that contribution grow to as much as £23 by retirement.
The research shows benefits across all age groups. For a 30-year-old, every £1 could grow to 14 times its value by retirement, while a 40-year-old could see an eightfold increase. Even at age 60, EV said £1 invested could almost triple in just five years before retirement.
Andrew Storey, EV’s group innovation director, said: “Put it this way – £100 invested at age 20 could provide £78 a year, every year, for 30 years in retirement (before tax).
“That’s an impressive long-term return. With many people unsure about how far their money can stretch in later life, these figures illustrate the power of starting – and staying – invested in a pension.
“Even small contributions can make a meaningful difference to retirement income. Pension Awareness Week is a fantastic opportunity for advisers to start fresh conversations with clients about the value of contributing to their pension.
“Our figures show just how powerful compounding can be, with even modest amounts invested today this can grow into significant income in retirement.”
He added: “Advisers are uniquely placed to help us understand the benefits of starting early, as well as the impact of topping up existing pots.
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