Young People and Their Pensions
26 September 2020
However, starting early and contributing small amounts at the beginning of your career can make a big difference once you come to retire. One calculation that can help you to figure out how much you would like to pay into your pension is halving your current age and using this number as a percentage of your salary, then paying this amount into your workplace pension. So, if you were 24, you would pay in 12% of your salary per month.
State pensions come from your national insurance contribution and are paid out when you are 66 years old, although this age will gradually climb over the next couple of decades. For you to receive a state pension you will need to make ten full years’ worth of national insurance contributions. Although to get the full state pension (of £175.20 per week currently) you will need to contribute 35 years of employment.