It is estimated that only 1% of people make adequate provision for their retirement.

A very large proportion of people consider that planning for retirement is something to do later in their working life, however nothing could be further from the truth.

In an ideal world, if you could benefit from the maximum pension possible from an employer, which usually means forty years service with them, it is highly likely that your pension will be substantially lower than your salary when you leave.

For example, the day you leave your employer to retire, your salary was say £45,000

You have worked for the same company for the past 40 years (very few people do) – 40 years gives you the maximum possible pension.

The following day, you have retired – you now have an income of just £30,000 – which is 33% less than you were earning the day before. A substantial drop in income.

The previous scenario illustrates how it is possible for someone have a pension plan running for 40 years, and still have a sizeable reduction in the money they have once they retire.

But very few people actually have 40 years of saving towards their retirement, most have far less.

Can you imagine how much (or little) they will receive?

Adequate provision for your retirement is vital, and it is imperative that you start this as soon as possible and review it regularly.

Many people decide to retire a few years early, and more people are living longer – therefore you need to be financially prepared well in advance.

Don’t have your working life over-promise, only to find your retirement under-delivers.

Take a closer look at the CIRAS Personal Pension Scheme.