How much should you have saved at each age?

It is hard to start planning for retirement when drawing a pension still seems a lifetime away. But whatever stage you’re at in life, you should aim to have something put away in case of an emergency, such as an unexpected repair in the home or to the car.

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The Money Advice Service suggests that the equivalent of three to six months of expenditure is an ideal amount to have put away for those unexpected outlays. Anything more than that, they say, should be managed longer term, in savings or investment accounts.
Saving through to retirement age
With the pressures of repaying student loans and finding work that will cover increasing living expenses and rents, people in their twenties often find it difficult to save. Yet this age group are most likely to have to work longer and receive diminished pension packages in retirement. At this stage, the minimum suggested savings is six months’ living expenses. This amount may vary depending on your circumstances, but calculated on the ONS national average of living expenses, it works out to be just under £14,000.
In contrast, US investment manager Fidelity suggests that any 30-year-old should have saved at least the equivalent of one year’s salary.

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Fidelity’s advice suggests putting away the equivalent of a year’s salary every five years so that by age 35, you have twice your salary, by age 40, you have three times, and by age 45, you have four times. When you reach 50, the rate at which you’re saving should increase, until by your mid-60s, you have 10 times your salary put aside.
Making your money work for you
Whether you can match Fidelity’s recommendations or not, you need to make the best of your savings, and here is where professional financial advice becomes invaluable. Today’s independent financial advisers are equipped with financial adviser software that allows you to view, understand and plan your finances in a way you could never manage alone. This software for financial advisers enables them to make sure your savings work for you at every stage of your life, through to and including your retirement.
Whilst a consultation with an expert comes at a fee, taking professional advice means that you’ll have fewer financial worries in the years to come.