Retirement Investor Insights: Saving for retirement

Ji talks about how she looked after her different types of work pension as she transitioned from working for an employer to being self-employed. Ji also provides a top tip for younger people starting out in the working world. Produced in partnership with Steps to Investing.

Hi, I’m Ji. I’m 33 and I’m from London. I’m self-employed and I run my own consultancy business.

My first pension was with my employer. On my first job I made the minimum contribution, but with each salary increase, I increased my percentage and the company that I worked for matched what I put in.

Since becoming self-employed, I have become more aware of contributing to my pension and I make my own investment choices through my Self Invested Personal Pension (SIPP). I make a regular contribution through a direct debit. And because I’m self-employed, with every dividend draw every quarter, I’ll make a lump sum deposit as well.

I have thought about my retirement, although it feels like a long way off. I don’t ever see myself not working, because it’s something that I’ve built and something of that is a passion project. I’d imagine I’d maybe work less or start winding down and I’d like some more time for leisure and travel.

Now I’m a little bit older and I’m not a grad anymore, I’m in a slightly more financially comfortable position to not have to compromise on lifestyle. I think my priorities have definitely changed. And with the pandemic, I guess my spending habits have changed as well. And therefore, during this time I’ve definitely considered, while I have the freedom and the luxury, to contribute more to my pension. For me, there is a tradeoff. It is a balance between long-term and short-term goals, but that’s a decision that feels right for me.

For younger people just starting out, I would recommend that you make small and regular contributions, because it can really snowball later. My regret, I guess, would be that I didn’t max out my pension while I was still employed, because my employer used to be match my pension contribution, which is another way to increase your salary and it’s basically free money.