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Saving

Moving towards your goals

At its heart, saving provides financial security, freedom, and protection against money emergencies. And having savings can help you to improve your financial wellness and reduce stress in your life. 

Establishing and working towards your savings goals can help you feel better prepared for those important moments in life, such as buying a house, helping family members, or affording the retirement you want. Knowing what you want to achieve is important, and, like exercise, little and often is a great way to start.

Have you thought about your long term financial goals?

We found that 91% of people we asked said that being financially comfortable in retirement is one of their long term financial goals. *The Fidelity Global Sentiment Survey, 2021

Get to know your goals

Understanding your goals is important, as it may help you to stay focused. So when starting to save, the first step is knowing what you’re saving for. It could be simply for peace of mind or:

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Buying a home

Whether you're buying your first home or moving home.

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A special event

Like a wedding or important birthday.

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Retirement

To give yourself a financially comfortable retirement.

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Refurbishing or renovating your home

Like painting the kitchen or installing a new boiler.

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Holidays

From an annual trip to a once in a lifetime experience.

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Starting a family

Helping to cover the costs of your bundle of joy.

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Timeframes are key

When you are thinking about saving, it’s important to know why you’re doing it. You might have some shorter-term goals that are relatively straightforward – getting your emergency savings in place, for example, or planning for something special, such as a wedding, a holiday, or a new car.

For the longer-term goal of building retirement savings, you’ve already made a great start by saving into your workplace pension. Retirement might feel like it’s a long way off, but caring about your pension now might make it the biggest investment in yourself and your future.

Short and medium-term
Long term

Maximise free money

That’s right! It’s worth remembering:

  • If you're saving into your workplace pension, your employer will also be paying in. They may also offer to contribute more if you do as well. This is called an ‘employer match’. If these extra contributions are available to you, why not take advantage of them to help grow your savings even more?
  • The government offers pension tax relief to encourage you to put money aside for your retirement, and is one of the benefits of saving through a pension. When you get tax relief, money that would otherwise have gone to the government as tax goes into your pension account instead. This doesn’t mean you won’t have to pay tax on that money in the future, simply that you don’t have to pay income tax on it now. Remember, the amount of tax you pay and whether you are eligible to invest in a pension will depend on your personal circumstances. All tax and pension rules may change. You can find out more about how pension tax relief works and how much you could be entitled to in our pension tax relief guide.

 

How to boost your retirement savings

Know what you need

Knowing how much you need for retirement now could set you up for the future you want. Read our retirement savings guidelines to check what you may need and how much you may need to save.

See how much you've already saved

Checking how much money you’ve already put away for retirement can help you feel more confident about the progress you’ve made. Log in to PlanViewer to see how you’re doing.

A little extra goes a long way

Use our calculator to see how a small change to your contributions today can make a big difference to your pension pot tomorrow. Even an extra 1% could supercharge your savings.

A quick summary on saving

  • Create savings goals, work out what you need to save and by when, and pay yourself first

  • Meet your match and check if your employer will contribute more into your pension if you do

  • Remember, a small increase to your retirement savings today, could make a big difference tomorrow.

 

*The Fidelity Global Sentiment Survey, 2021. The sample consisted of respondents with the following qualifying conditions: aged 20-75, either they or their partner were employed full-time or part-time and had a minimum household income of £10,000 annually. The data collection, research and analysis for the above markets was completed in partnership with Opinium, a strategic insight agency. Data collection took place between July 2021 and August 2021. Reporting and analysis took place between August 2021 and October 2021.