Retirement savings: the first steps for every age group in the UK

Your 20s are the most powerful decade for retirement saving due to compound growth. The essential first steps are: start a pension immediately — if you are employed, you are already auto-enrolled and contributing, but check you are on the right contribution rate; increase your contributions above the minimum — even 2-3% above the auto-enrolment minimum makes a dramatic difference over 40+ years; open a Lifetime ISA — the 25% Government bonus makes this an excellent supplement to your workplace pension; avoid opting out of auto-enrolment — even if money is tight, the employer contribution is free money you cannot afford to lose; and keep costs low — low-cost index funds within your pension will outperform expensive actively managed funds over decades.

Your 30s are a critical decade where career progression typically means higher income, but financial responsibilities also increase. By your mid-30s, your pension should be a significant financial priority alongside your mortgage and family costs. The essential steps for your 30s: check your projected pension pot using MoneyHelper's pension calculator — many people are shocked by how far short their projected retirement income falls; increase pension contributions with every pay rise — aim to save at least 15% of salary overall when possible; consolidate old pension pots — tracking down old workplace pensions from previous employers is worth the effort; use salary sacrifice if available — sacrificing salary into your pension can be more tax-efficient than direct contributions; and consider your retirement age — knowing when you want to retire shapes how aggressively you need to save.

If you are in your 40s or 50s and have not yet prioritised retirement savings, catch-up is still possible. The steps to take: use the state pension forecast — check your projected State Pension on Gov.uk and understand what income you will receive from the state; calculate your gap — use a pension calculator to understand how much income you need versus what you will have; maximise contributions — use carry-forward rules to make the most of unused annual allowance from previous three years; consider part-time work in your 50s — reduced hours combined with beginning to draw a pension can improve quality of life while reducing savings pressure; and speak to a financial adviser — the cost of a one-off financial review (£300-1,000) is often worth it when retirement is within 10-15 years.