Legal & General : Ambitious young savers want to retire early but would need to increase pensions savings by 15% to reach their goal

• Ambitious young savers would need to increase their workplace pension contributions by nearly 15% on average to meet their goal
• The power of compound growth could be the key to achieving retirement ambitions - putting just £30 more away a month could result in £100,000 more in the eventual pension pot of the average 22 to 32-year-old
• To find out more about how you can start planning for retirement in your 20s, visit Legal & General's Lost Decade guide to pension contributions

New research from Legal & General Retail has found that almost a fifth (17%) of young savers (those aged 22-32) hope for an early retirement before the age of 601, with 70% expecting to retire before the current state pension age of 67.

Based on new modelling from Legal & General, young savers would need to be adding a further £312 a month on top of the average 8% contributions to their workplace pensions to meet their retirement goal2. This represents an additional 14.25% of monthly income committed to a workplace pension.

To retire by 67, the current state pension age, these younger savers would still need to be contributing an additional 3.5% to their workplace pension, amounting to a further £72.50 a month, even with a state pension boost of £10,600 per year upon reaching retirement3.

Putting away an additional £312 a month in pension contributions is out of reach for most young savers, however the power of compound growth means that even small changes made early can have a significant impact on people's retirements. Putting just £30 extra away a month from the age of 27 could see someone with £100,000 more in their pot by the time they reach the current state pension age.