Increasing pension contributions 'important at 50'

By Tom Farley, Tue 20 Jul 2010 - Published in Pensions

People should consider increasing their pension contributions when they reach the age of 50, according to an expert.

The recent State of Retirement Report by LV= found that just eight per cent of the UK's over-50s have increased their level of pension contributions over the past year, even though the stock market has shown signs of improvement.

Commenting on the findings, Laith Khalaf, pensions analyst at Hargreaves Lansdown, said it is "concerning" that people do not realise the importance of being attentive to their retirement saving as they age.

"People [who are] in their 50s, that is a prime time for people to increase their pension contributions to make up for years when perhaps they haven't contributed," he continued.

Mr Khalaf added that people can afford to make greater contributions at this age, as they are less likely to have dependent children and could face smaller mortgage repayments.

The expert also recommended that people invest in the stock market when they are 15 years away from retirement, then gradually reduce their exposure to risk in their last ten years in employment.

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