HiI am writing a piece for MoneyWeek online this morning looking at how much you need to save for a comfortable retirement but particularly focusing on the half your age rule (the idea that you should save a percentage of your pre-tax salary equal to half your age.)I am keen to get views on how this rule of thumb works? Is it still relevant?&nbsp;Does the rule take account of employer contributions? Is it harder if you are self employed and have fluctuating income?Does it apply to monthly or annual contributions?How useful is it? What are the pros/cons?Kind regardsMarc&nbsp;

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The 50% pension rule - MoneyWeek article

The old, half your age as a contribution percentage, was always somewhat of a rough guide. And it never worked for older people. In its most extreme, a 64-year-old paying 32% of their salary into a pension for one year will never retire on 50% of salary. That said, I think it still serves a purpose for younger people. Playing around with the MoneyHelper's online pension calculator, I found most younger people could achieve a projection of at least 50% provided they retire at state pension age, exclude employer pension contributions from this 'rule' and add the state pension in retirement. Source: https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/use-our-pension-calculator

Scott Gallacher

Scott Gallacher is a Chartered Financial Planner, Independent Financial Adviser and Director of Rowley Turton, a Chartered independent financial planning firm based in Leicester. He has worked in financial planning for nearly 30 years and regularly comments in the national media on retirement, pensions, inheritance, investing, tax and later-life planning. Scott is the author of 50 Today 100 Tomorrow: Planning Your Money and Life for the Next 50 Years and founder of 100 Tomorrow, where he writes about retirement, longevity, financial planning and making the most of the years ahead. He is APFS qualified and holds specialist qualifications in pensions, taxation, trusts, investments, long-term care, equity release and divorce. Scott has a particular interest in the human side of financial planning, including when people have enough, when they can afford to retire, how much they can safely spend and how they can help the next generation without compromising their own financial independence.

The 50% pension rule - MoneyWeek article

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Scott Gallacher

Director at Rowley Turton

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