How big should your pension be at 50?

An approximate rule of thumb is that by age 50, you should aim to have saved at least six times your annual salary in your pension. But the actual answer is (annoyingly); it depends. Factors to consider are; when you plan to stop work, how much you expect to spend in retirement, whether you're entitled to the full state pension, potential inheritances, your state of health etc etc. It's not a simple question, but typically it's best to start saving as early as possible - it's never too late.

It is never too late to plan for retirement. However, your life will be much easier if you start your planning when you get your first job rather than towards the end of your last job.

You may not need to have any money in a pension as you may have your retirement income covered from other areas such as ISAs, Bonds, Property, inheritance etc.

If you have nothing elsewhere then you need to take action now. How much you will need to contribute will depend on how much you want to spend in retirement.

There used to be an old rule that said at 50 you should be putting away 25% of your income for retirement. But if you have nothing saved already then it is likely that you will need to do much more.

Do not fret, as doing something is better than doing nothing.