Ryan FowlerFinancial 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.
“With growing concern around financial resilience in later life, there’s never been a better time to engage consumers, demystify pensions, and demonstrate the life-changing difference that steady saving can make.
“Encouraging clients to check in on their pensions, understanding how they are invested, and adding a little more where they can, are simple steps that could help ‘power up’ later-life income.
“There is also a real chance for advisers to use streamlined and digital-hybrid advice models to engage more consumers with their pensions.
“Too many people delay starting or topping up their retirement savings because they feel overwhelmed or assume advice is out of reach.
“By leveraging consistent, scalable technology, advisers can deliver clear, personalised guidance at lower cost – helping more people understand the long-term power of pensions and take action.
“This is not just about efficiency, but about expanding access and creating better outcomes for consumers at every stage of their retirement journey.”
