Key Takeaways:
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20-somethings need to save £500/month for retirement
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35-year-olds should set aside £841/month
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45-year-olds must save £1,703/month
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55-year-olds face a steep £4,508/month target
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Starting early dramatically reduces required contributions
The Shocking Savings Targets for Every Age Group
New research from Fidelity Investments reveals exactly how much each generation needs to save monthly to achieve a comfortable retirement. The figures assume no existing savings and account for compound growth over time.
Monthly Savings Targets by Age
| Age | Monthly Savings Needed | Why It Matters |
|---|---|---|
| 20s | £500 | Early starters benefit most from compound interest |
| 30s | £841 | Still time to build wealth, but urgency increases |
| 40s | £1,703 | Critical decade – late starters face steep climb |
| 50s | £4,508 | Last chance to make major retirement preparations |
Why Starting Early Makes All the Difference
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A 25-year-old saving £500/month at 6% annual growth could accumulate £1.1M by 65
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Waiting until 35 means needing £841/month for the same result
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Delaying until 45 requires £1,703/month – over 3x the 20s amount
Emma-Lou Montgomery, Associate Director at Fidelity International, explains:
“The power of compounding means early savers need to put away significantly less. Those who delay face much steeper monthly targets.”
3 Action Steps for Every Generation
1. In Your 20s-30s
✅ Start immediately – even small amounts grow substantially
✅ Take full advantage of employer pension matches
✅ Invest in growth-focused assets (80% equities)
2. In Your 40s
🔍 Conduct a retirement gap analysis
⚖️ Balance growth and stability (60% equities, 30% bonds)
💸 Maximize tax-efficient savings (ISAs, pensions)
3. In Your 50s
⏱️ Consider catch-up contributions (use annual allowance)
🛡️ Gradually shift to more conservative investments
📅 Plan withdrawal strategies (annuities vs. drawdown)
What Counts as a ‘Comfortable’ Retirement?
The research assumes:
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Single retiree: £23,300/year
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Couple: £34,000/year
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Includes leisure, holidays, and unexpected costs
Bottom Line: Time Is Your Greatest Asset or Worst Enemy
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Best case: Start in 20s with £500/month
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Worst case: Delay until 50s and need £4,500/month
Expert Tip: Use pension calculators regularly to stay on track as your circumstances change.
