Paying into a pension is a tax-efficient way to save

The value of your Account at retirement will depend on how much is paid into it, how your investments grow, and when you decide to retire.

Deciding how much to pay in can be difficult, so here are a couple of key points to keep in mind.

  1. A little money paid in at an early age has the most potential to grow. This is because it will be invested for longer. Imagine that from the age of 25 you stopped buying a £3.00 cup of coffee every day and saved that money in your Account instead. That £3.00 a day could mean an extra £780 saved every year, or £31,200 by the time you reach age 65. If you also assume some investment growth, for illustration purposes say 5% each year, it could be worth nearly £100,000 when you reach age 65.
  2. Make sure you are getting the maximum contribution from AXA, as you may be able to get more from AXA by increasing your contributions. You can find out what your rates and AXA’s rates are in the Member Guide.

You can use the ageOmeter modeller on your LifeSight Account to see the effects of making changes to your contributions.

How much you should be contributing depends on what kind of lifestyle you’d like in retirement, and how much you’ll need to save to reach your goal. For further information and help with planning for your retirement, visit our retirement planning section.

What happens if...?

Our FAQs explain what happens if you take family leave, leave AXA, are made redundant, are absent due to long-term sickness, want to leave the Mastertrust, get divorced or die.

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