IT'S never too early to plan your retirement.

If you're young, saving for a pension may seem too far into the future but we all know how time flies and, according to research, you need to start saving as much as you can to maintain a comfortable lifestyle when you finally give up work.

According to financial experts, Fidelity International's global retirement savings guidelines1, UK savers need to put away seven times their annual household income by the age of 68, compared to an average of 10 times in other parts of the world to maintain the lifestyle they had pre-retirement.

The brand new global retirement savings guidelines from Fidelity have been used to generate a global standard for keeping retirement savings on track.

Designed to provide savers with a set of simple “rules of thumb”, accessed by an interactive tool, the global guidelines help address the two most common retirement-related questions from those saving for retirement: “How much do I need to save for retirement?” and “Am I on track to save enough?”

Global analysis from the Fidelity retirement savings guidelines identified the savings milestone for the UK is one of the lowest in the world needed to maintain people’s current lifestyle in retirement - just 7x their annual household income saved by retirement.

Brits should aim to save a pension pot equal to 1x their annual household income by the time they are 30, 2x by the time they are 40, increasing to 7x by the time their state pension kicks in at 68.

For those in the UK, to reach that 7x milestone means saving 13 per cent a year from the ages of 25 to 68. Auto-enrolment means that from April 2019, for those in full time employment, employers will contribute at least 3 per cent, and employees will also be contributing 5 per cent of their salary pre-tax from April 2019. This means UK savers only need to save an additional 5 per cent to reach their 13 per cent savings rate.

Maike Currie, Investment Director at Fidelity International, explains: “While UK savers need to save less than other countries, there is still a lot more that could be done to educate and prepare the population to save for their retirement. Auto-enrolment has had a real impact, with 73% of employees now contributing to a UK pension, and employers have a significant role to play in engaging their workforce. However, the onus is still on individuals to make sure they’re saving enough. This is why we have developed these simple rules of thumb to help people to achieve their long term savings goals with a little bit of financial forward planning.

“Ultimately what the saving goal is doesn’t matter; what does matter is that there is a way of getting there if the right plan is in place. At whatever age someone starts on this journey, a focus on the goals ahead is vital. Missing a milestone is not the end of the world, and can be overcome through planning and saving – the best first step is to start.”

Bradford-based Watson Buckle accountants are urging people not to leave it too late when planning ahead - and consider other retirement planning options aside from pensions.

Susan Sedgwick, the firm's Joint Managing Director, acknowledged pensions are “one of the most important aspects of retirement planning,” adding that people should also consider the likes of property investment, business succession planning and drafting a tax-efficient Will in order to avoid unwanted surprises for themselves and their families later down the line.

“If you are a business owner, you might wish to pass your business on to other members of your family when you retire or sell the business on. Whatever your wishes, you will need to seek specialist tax advice and plan ahead accordingly from an early stage to avoid facing unfavourable tax consequences.”

“Similarly, those who decide to invest in property need to factor in the costs of Stamp Duty Land Tax (SDLT) on additional property purchases and the phasing out of mortgage interest tax relief if they intend to let out a property in order to supplement their retirement income.”

Susan said that the tax challenges individuals were likely to face were far-reaching, diverse and often difficult to overcome without specialist advice.

“This is why it is important to seek advice early on and come up with a structured plan for your later years as soon as you can."

For more information visit fidelitypensions.co.uk/retirementguidelines or watsonbuckle.co.uk