Savings accounte vs Pensions

Fluffysaver

Hi - this is my first time in a forum, so please excuse me if the answer to my question is very obvious to everyone else.
Martin tells us, in this month's Moneywise, that we should be saving 15% of our salary each month (Gulp). What I need to understand is, would it be better to put that money into a high-interest regular-saver savings account .... or should I take up my Company's offer to increase my pension contributions to 1/50th of final pensionable pay? And, are there any pitfalls i should know about please? I don't have any debts to worry about.

dunstonh

savings accounts historically do not keep up with inflation. So, in real terms, the value of your money goes down. That is acceptable for short term savings but nothing long term. The last few years have seen savings rates beat inflation but it appears to be returning the historical norm with current inflation where it is.

Your comments suggest you have a final salary occupational pension with a 1/50th accrual rate for every year of service. That is very good and you should take it.

For reference, 15% in Martins article is a guide figure and assumes gross contribution and not net. Someone in their 20s could get away with less than that. However, someone in their 40s would be needing to do more.