Lawson Equity HQ, Rocomar Shops, 6 Portruman Street, Qawra, Malta
+356 2157 6666

Is it ever too late to start saving for your pension?

It’s never too late. You can take charge of your finances in preparation for retirement at any age. We have put together some points to consider when saving for your pension after your thirties.

We all want to spend our later life doing what we love without financial worries, right? The best way to ensure this is to start putting money aside as young as possible. But it’s not everyone’s priority in their twenties to start building their pension pot. If you didn’t manage to save in your twenties, thirties, or even forties then that is absolutely fine. It’s not too late to reach your retirement goals.

Even if you’re now in your forties, fifties or even sixties, there is still time to build a substantial retirement fund. We’re not saying it’s going to be easy to catch up, but with a solid plan in place and some real discipline and dedication to your savings, you can backtrack on your mistake to not start earlier. So, where should I start? You may be asking. There is no one strategy that meets everyone’s needs – the path you need depends on your age, finances and personal circumstances. We have some points you may want to consider if you want the pension pot you’ve been dreaming about:

Check on your state pension

The best place to start is to check your state pension. If you’ve been working all your life, the chances are you already have a pension pot. Your forties are a great time to check if you’re on top of your pension contributions. If you’re not, it’s time to catch up. As you get older and reach your fifties and sixties, it can become more difficult to catch up with state contributions.

Could you consolidate your workplace pensions?

Do you know how many workplace pension pots you have contributed to? Who are they with and how much is in each? It’s time to locate them and check how much you have saved in total. It may not be a life changing sum, but it all counts and could be consolidated into one place to make them easier and maybe even cheaper to manage.

Something else to consider is that if your financial situation is better now than in your earlier working years, you could start to make larger contributions. Saving more in your workplace pension can help boost and maximise your future pension pot.

Set up a personal pension

Maximising your state and workplace pensions is a great thing, but it may not be enough to ensure you reach your desired retirement target. If you’re between your forties and sixties and haven’t got much put aside for retirement, you need to broaden your options. A private pension will allow you to take control of your retirement and boost your savings. The best part is with a personal pension, you can choose how much you put aside, whether it’s £100 a month or £10,000 as a lump sum. The other benefit of a personal pension is that it allows you to make contributions until the age of 75, which could give you some extra time to save for your retirement.

Opening a personal pension can feel like a big job, but it doesn’t have to be. Our team is here to help you choose how much you should invest, and the risk level that suits your needs, depending on where you are in life and where you want to be by retirement age. We’ll do the hard work for you, and by this, we mean we’ll pick your investments and manage your pension continuously, so it remains on track with your investment style.

Consider upping your investment risk

If you’re now in later life and only just starting saving for retirement, it’s a good idea to think about your appetite for investment risk. It’s always up to you to decide how much risk you’re willing to take. But you may want a professional to review your financial situation, your timeframe, and your risk appetite to give you the best possible chance of reaching your retirement goals. If you feel confused and need help, it’s always a good idea to contact a financial adviser.

How much do you want to save?

As you approach retirement, if circumstances allow, you may want to increase your contributions to maximise your pension pot. Typically, the longer you wait to save, the more you may need to pay to catch up and reach your retirement goal. But don’t worry, this doesn’t mean you’ll need to put in thousands at once. A good way to build wealth for your later life is to regularly make sizable contributions. And if you can afford it, you could try and pay a bit more. It doesn’t have to be a huge increase. Adding an extra €10 or €20 to your monthly contributions could make a huge difference over time due to compounding.

Whatever you decide to put in your pension, the most important thing is to get started. If you want to ensure you live the retirement of dreams, the earlier you start, the better.

Click here to schedule a no obligation initial consultation with one of our advisors.

Lawsons Equity – Financial Planning Malta

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down. You may not get back the original amount invested.

Lawsons Equity Limited is a company registered in Malta with company number C49564 and licensed by the Malta Financial Services Authority as Enrolled Insurance Brokers under the Insurance Intermediaries Act 2006, and to provide Investment Services under the Investment Services Act, 1994.

Lawsons Equity Ltd have passported their services across the EU. To see a full list of countries click here.

Scroll to top