Plan for the future

We are living longer than we used to, thanks to improved standards of living and better healthcare. But with many people enjoying longer retirements than they planned for, it can mean not being able to make ends meet in later life.

So the sooner you start saving for retirement, the more you'll be able to save, and the more comfortable you'll be.

How much might you need?

Everyone's situation is different, so there is no single rule to follow that will tell you exactly how much money you'll need for your retirement. It will depend on many factors, including:

The age you plan to retire
Whether you own your own home
The rate of inflation
Whether you have debts that you need to manage
Your family and number of dependents
Whether you plan to continue working, in any capacity, and semi-retire

A good starting point is to assume you will need between half and two-thirds of your salary, after tax is deducted, to maintain your current lifestyle.

Employer contributions

You may find that your employer has an obligation to contribute towards your pension or retirement fund in proportion to your own contributions. It can help to grow your savings significantly, and you may also be entitled to tax relief on the combined sums saved.

Some employers might also offer "contribution matching", which is when they agree to make additional contributions into your retirement savings, as long as you agree to increase your contributions as well.

When planning for your future, here are 3 key points to keep in mind:

Start as soon as you can. The earlier you start saving, the more the interest on your savings will compound, and the longer you will have to save.
Make the most of any tax-free savings and employer contributions you're entitled to.
Build your knowledge. You can talk to an HSBC Relationship Manager to find out about the different investment products we offer. It's also wise to speak to your trusted financial advisor before making any decisions.

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