Save 2%: don’t be in the workhouse when you retire

Save 2% for retirement

I was reading a blog post on Business Matters about how a fifth of people have no pension savings.

Pension savings are very important.

There won’t be a state pension in a few decades time in my opinion (that affects you if you’re in your 20s or 30s).

This means saving for when you finish work is crucial unless you really like eating baked beans 3 times a day.


Where is the money going to come from?

A lot of one man bands with tight cashflow find it difficult to cover day to day living, let alone put money aside for 30-40 years time. It can feel too big a task.

What to do –

  • Save an extra 2% when you get paid.
  • Put it in an ISA and forget about it.

Survival can be difficult now, but it’s much harder further down the line when ability to work is much less.

You’ll thank yourself later.

How you do you manage your pension savings? Do you have any? Tell me in the comments.



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  1. This is a salutary reminder to SAVE!

    But how do you work out 2% if your income fluctuates?

    Nah, that is an excuse for procrastination.

    The point is to save a tiny (so small I probably won’t notice it like my various charity spends) amount each month.

    Talking about my monthly charity spends….I should think of my 2% (or whatever) as a charity spend for ME in my (please god) old age.

    Thanks, Rosie. Love your approach to money. Down-to-earth and do-able.

  2. Very good question, Elisabeth! Partially it depends on how and why your income is fluctuating – hence the need for individual help. Since I know you’re a freelance journalist, I’ll take that as an example 😉

    There are 2 issues – cash flow so you can pay bills and eat when you have less money coming in, and saving for the medium, long and – not getting paid because clients aren’t paying you – term.

    In this case, I suggest the squirrel approach to have lots of savings accounts for different purposes and you can adjust how much goes in each according to how much you get paid.

    Yes, you 🙂

    PS. Just a reminder to mention that charity giving in your tax return.


  1. […] For how to save, read Save 2%: Don’t be In The Workhouse When You Retire […]

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