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Friday, September 24, 2021

Retire five years earlier by working from home

Savers can retire five years earlier by investing the cash saved by working from home as new figured showed the average Briton tucked away £241 a month by cutting commuting.

One in six of us put the savings into a pension, according to Nutmeg, a wealth firm, squirrelling an average of £128. However, if savers continued to do this for 30 years it would increase pension pot by a third and allow them to retire five years earlier.

If a saver wanted an income of £20,000 in retirement, they would have to save £410 per month for 30 years. Adding the work from home savings would reduce this to 25 years, assuming a return of 6.5pc, with fees of 1pc.

The saver could also increase their annual income to £26,415 by sticking with the original 30 year timeline, Nutmeg said.

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