Saving for retirement in your 20s made simple

Saving for retirement in your 20s might not feel like a priority but getting started early can make things a lot easier later down the line. Whether you’re just beginning your career or juggling different jobs, knowing how to plan for retirement in your 20s can help you build confidence and take small steps now that your future self will thank you for. 

This guide is for anyone looking to understand how to start a pension plan, how much they might need later in life, and how to save for retirement in your 20s in a way that fits real life and real budgets. 

 Why saving for retirement early matters 

Starting a pension or retirement fund in your 20s can give your money more time to grow. Even small regular contributions can add up over time, especially if you’re also getting payments from your employer through a workplace pension. 

Under the UK’s auto-enrolment system, most employees are already paying into a pension by default. But according to recent data, nearly one in three working young adults have never contributed to a pension and many of those who have don’t know how much they’ve saved or where it’s held. 

Saving for retirement early doesn’t have to be about putting away huge amounts. It’s about creating habits now that make things easier down the line.  

How to save for retirement in your 20s 

Getting into the habit of saving doesn’t need to be complicated and it definitely doesn’t mean giving up all the fun stuff. Most people in their 20s are already enrolled in a workplace pension, but few people check in on it, and many don’t realise how valuable those early contributions can be. 

Even if you’re not sure how pensions work or how much you need, there are simple ways to start shaping your financial future. Whether it’s setting a basic savings goal, tracking down old pensions from past jobs, or exploring tools like the MoneyHelper pension calculator, the support is out there. 

Campaigns like National Pension Tracing Day are helping individuals find lost pension pots, while apps and online dashboards are making it easier to see what’s building in the background.   

What about other savings? 

A pension is just one way to grow your money over time. Many people in their 20s also put money aside in savings accounts or ISAs. If you’re unsure where to begin, MoneyHelper has free tools to help you compare options and learn more about what’s going to be right for you. 

Having an emergency fund, even just a few hundred pounds, can stop you dipping into long-term savings when life’s unexpected costs come up. 

Helpful links 

• MoneyHelper pension and savings tools 

• Financial wellbeing support at Foster Denovo

Ready to take the next step? 

Saving for retirement in your 20s doesn’t need to be perfect, it’s just about taking those initial steps to get started. And if you’ve read this far, you’re already ahead of the game. Whether you’re saving a little or a lot, what matters most is building a few good habits you can grow over time. 

 
Our free guide, ‘5 top tips for retirement planning in your 20s’, is written just for you. No jargon, no judgement. Just practical tips you can read in five minutes, ideal for your next tea break. 

Get in touch
If you would like to discuss Saving for retirement in your 20s, or if you wish to schedule an initial consultation, please contact us.advise-me@fosterdenovo.com

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment can go down as well as up and you may not get back the full amount invested. Investments do not include the same security of capital which is afforded with a deposit account. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances. A pension is a long-term investment the fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Pension savings are at risk of being eroded by inflation. The tax treatment of pensions in general will be based on individual circumstances, tax legislation and regulation, which are subject to change in the future.