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.
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.
You can use the ageOmeter modeller on your LifeSight Account to see the effects of making changes to your contributions.
When you make contributions to your AXA pension we are paying in too.
If you are an AXA employee (not working for either AXA Investment Managers or The Permanent Health Company) and joined from 1 September 2017 you can pay a minimum of 3% of your salary each month into your pension pot. It’s not just your contributions that are added to the that pot though, AXA will add up to 12% through matching your contribution and then adding an additional 3% (capped at 12% if you pay in 9% and above) into your pension savings too.
Take a look at the table below to see what might work for you:
| You pay % |
Company pays % |
| 3 (default contribution) |
6 |
| 4 |
7 |
| 5 |
8 |
| 6 |
9 |
| 7 |
10 |
| 8 |
11 |
| 9 and above |
12 (maximum employer contribution) |
If you joined AXA before 1 September 2017 or work for either AXA Investment Managers or The Permanent Health Company, you will need to use the contribution calculator to find out more about your contributions or you can visit the ‘My contributions’ section of the Member guide by logging into your online LifeSight Account.
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.