Saving for retirement sometimes feels like trying to guess what size jeans you’ll wear in 30 years.
You know it’s important to save for retirement, but between bills, debt, and that car repair that came out of nowhere, you keep pushing it down the list.
But here’s the thing: you don’t need six figures or a fancy degree to make it work.
What you really need is a few habits that stick, a little clarity, and a plan that doesn’t stress you out.
Let’s break it down in plain English, no jargon—just real ways to start saving, no matter how old you are right now.
The why is more important than the how
First off, the state pension isn’t going to cut it.
It was never meant to cover everything, and unless you lucked into a pension (good for you if you did), what you’ve got later depends on what you save for retirement now.
Starting early helps but it’s fine you’re you start later in life.
The important thing is that you start.
Here are 7 practical, no-nonsense steps you can take to help prepare for retirement.
Step 1: Stop chasing some magic number
You’ve heard the rules: save a million, or 10x your salary, or something similar.
Honestly? Helpful-ish, but they’re not one-size-fits-all. Try this instead.
Ask yourself:
- What kind of life do I want to live when I stop working?
- Am I living in a big city or somewhere cheaper?
- Will I still work part-time or live a life of leisure?
Once you’ve got a general picture, figure out how much income you’d need each month to live that way.
Multiply it by 12 to get a yearly amount.
That’s your goal.
Use a calculator to play with the numbers if you need to but don’t get stuck here forever. It’s a guide, not a trap.
Step 2: Grab the free money first
If your job offers a pension with matching, that’s like your boss handing you free cash. Don’t walk away from that.
- Say they match 100% up to 4% of your salary—that’s like an instant 100% return on your money. No investment beats that.
- Even if you can’t swing the full amount, put something in. 1%, 2%—it adds up. Increase it every few months if you can.
- Plus, it comes out of your salary before taxes so you’re saving and paying less tax. Double win.
Get that full match locked in first. Then move on to other accounts.
Step 3: Automate it because willpower is overrated
One big reason people don’t save is because retirement doesn’t feel urgent.
Rent or the mortgage does. Groceries and bills do. But retirement? That’s some future-you problem.
So take emotion out of it. Automate it.
- Let your employer set up deductions into your pension
- Set up monthly transfers into savings or an ISA
- Use a budget app to treat savings like a bill—it’s non-negotiable
You won’t have to remember it, stress about it, or feel guilty. It just happens, in the background.
Step 4: Trim spending you barely notice
You don’t have to go full hermit to save more. Usually, it’s the little things that are sneakily draining your cash.
Look at:
- Subscriptions: Got two streaming services you barely use? Time to cancel one.
- Takeaway habits: Even cutting one £50 meal a week frees up £200+ a month.
- Impulse buys: Give yourself a 24-hour wait rule. A surprising number of “wants” fade fast.
- Groceries: Plan your meals. Make a list. Buy less junk that goes bad before you eat it.
You’re not punishing yourself, you’re just deciding where your money actually matters and redirecting it toward future you.
Step 5: Treat windfalls like little power-ups
Tax refund? Bonus at work? Birthday money from your grandma?
Don’t blow it all on stuff you won’t care about next month. At least stash part of it in your retirement fund.
Try this: save half, enjoy half.
Why it works:
- It’s money you weren’t counting on, so it doesn’t mess with your budget
- Even one-time boosts can grow big over time
- You still get a little treat, but your future gets a gift too
Feels good now and later. Best of both worlds.
Step 6: Avoid sneaky fees
High-fee investments are like tiny holes in your boat—you might not notice right away, but they’ll sink you over time.
Tips to avoid high fees:
- Keep an eye on pension fees and bank charges
- Watch for fees if you transfer pensions or savings
- Watch tax on savings and go tax-free wherever possible
You don’t need to become obsessed with fees, just don’t let them quietly take your money.
Step 7: Don’t cash out early—unless you love penalties
Left a job and thinking of cashing out your pension? Please think twice.
You can withdraw some tax free, but there are rules, lots of rules. Make sure you know the full picture before you do anything.
Then only do it if you really need the money.
It’s not about being perfect—it’s about being consistent
Nobody nails every step, every month. Saving for retirement is a series of small, smart moves that add up.
Quick recap:
- Start wherever you are. Even if it’s £10 a week.
- Get your employer’s match—it’s free money.
- Automate the savings so you don’t even think about it.
- Cut small stuff that doesn’t bring joy, save for retirement.
- Use windfalls to speed things up.
- Leave your retirement savings alone—don’t raid the stash early.
Start today, even if it’s messy. Future you will be so glad you did!
