| The simplest way to look at how much to pay in to your pension is in terms of a percentage of your salary. If you have a target of between half and two thirds of your income at retirement, our pension calculator allows you to check how much you might receive if you increase your contributions. The basic message is that the sooner you start, the smaller the proportion of your salary you will have to pay in. If you start in your mid-20s, you will have to pay in 10 per cent to meet a 2/3 income target at 65. By your mid-30s, the amount is at least 15-20 per cent. | ||||||||||||||
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How much can you pay in? If you belong to an occupational pension scheme, you are allowed to pay in up to 15 per cent of your taxable earnings. However, you can usually only pay in around 5 or 6 per cent to the main scheme. Extra contributions have to be paid as additional voluntary contributions (AVCs). | ||||||||||||||
| What about personal pensions? You can also use the pension calculator to check how much you might get back from your personal pension, and find out the effect of increasing your contributions. How much can you pay into a personal pension? The limits are higher than for occupational pension schemes, as there is usually no employer’s contribution going into a personal pension to boost the fund. Personal pension contribution limits are age-related: | ||||||||||||||
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