logo
How much should you be saving each month at 30, 40 and 50 years old?

How much should you be saving each month at 30, 40 and 50 years old?

Independent4 days ago
SPONSORED BY TRADING 212
The Independent Money channel is brought to you by Trading 212.
Building a savings pot can help provide an important safety net to cover unexpected expenses or even for key money milestones.
A savings pot can come to the rescue if you need cash to cover emergencies such as home repairs or you could use it to work towards a goal such as a holiday or a dream car.
It can be hard to know how much you should save though as everyone will have different goals and there are different factors at play such as your income and even your age.
One common savings mantra is the 50/30/20 rule, where you spend half your salary on expenses, 30 per cent on wants and put 20 per cent in savings.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: 'Everyone will have their own goals and aspirations when it comes to their savings pots which will change as people progress through their adult lives.'
The right amount to save depends on your stage of life and what gives you peace of mind, says Philly Ponniah, chartered wealth manager at Philly Financial.
'Factors like job security, dependents, insurance, and access to other savings all play a role,' she explained. 'As with all personal finance, it's personal, the right safety net is the one that helps you feel financially secure.'
There are a various ways to save, from high-interest easy access accounts that let you withdraw your funds when you need them, to cash ISAs where your returns are tax-free. However you put money aside, here is how much you should save based on your age.
How much should you save in your 30s?
By the time you reach age 30, you will most likely have finished studying and may have a student loan to repay, while you could also have left your childhood home and be balancing paying rent and saving for a deposit to buy your first property. There may even be plans to get married.
That is a lot to put money aside for.
The median salary for someone age 30 to 39 is £39,988, according to the Office for National Statistics (ONS), which would mean saving £7,997.60 annually or £666.47 on a monthly basis based on putting aside 20 per cent.
However, Springall said: 'Typically, those in their 30s should be saving slightly more than 20 per cent, aiming for 25 per cent of their disposable income. They must also ensure they are contributing a fair portion of their salary into their pension and be sure to have some cash stashed away to have a holiday or pay for any hobbies to take care of their wellbeing.'
How much should you save in your 40s?
ONS figures suggest those in their 40s typically earn £42,796 per year. That would mean putting aside £8,559.20 a year or £713.27 per month.
But by the time you reach your 40s, you may have even more financial challenges such as paying a mortgage, running your own business and even bringing up a family or caring for older family members.
Springall added: 'It's no wonder then if some have forgotten to put a little bit of cash to one side.
'The general budgeting rule applies here, where 20 per cent of any disposable salary saved to cover costs, and ensure pension provisions are not neglected when other life events take centre stage. Those feeling the strain would be wise to set up a pot that's quick to access, in case of emergencies.'
How much should you save in your 50s?
In an ideal world, someone in their 50s would be close to paying off their mortgage, which should free up some savings and mean more money can be put towards retirement in hopefully the near future.
ONS data suggests that median salaries drop once people are in their 50s, as some may slow down at work later into the decade. The typical salary for someone age 50 to 59 is £40,456 so putting aside 20 per cent would mean saving £8,091.20 per year or £674.27 a month.
Springall suggests the lack of other financial commitments can hopefully free up a decent portion of someone's net income at this age but it would be wise to start thinking about funding your retirement.
She said: 'People are working longer, and living longer, so that means they need to put even more money away into their pension to fund their retirement.
'The first question someone should ask is whether they will be able to retire 'comfortably' or not. If no, then they must prioritise building their savings, or relinquish assets to cover the cost of care and comforts. This is where advice is critical.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Pirelli's Latest High-Performance Tire Is 70% Recycled Materials – But Only Available For One Car
Pirelli's Latest High-Performance Tire Is 70% Recycled Materials – But Only Available For One Car

Auto Blog

time41 minutes ago

  • Auto Blog

Pirelli's Latest High-Performance Tire Is 70% Recycled Materials – But Only Available For One Car

By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. A spin in the right direction While drivers tend to overlook tires until they need to be replaced, companies like Pirelli obsess over them. Constantly improving and iterating, Pirelli is now introducing a tire to market that features nearly three-quarters recycled components, suggesting that the future of high-performance tires can utilize used materials without compromising performance. The downside is that, at least for its first recycled tire, Pirelli is limiting production to a single tire size, which was developed specifically for a single vehicle. It was also developed as an OEM tire, and it's unclear whether Pirelli will produce them for the aftermarket. Pirelli P Zero tire — Source: Pirelli All about the 70% recycled Pirelli P Zero This new tire is part of Pirelli's commitment to making all natural rubber used in its European factories Forest Stewardship Council (FSC) certified by 2026. The tire maker previously released an FSC-certified tire in 2021. FSC certification is specific to the rubber used in the tire, which has to be certified as natural rubber and is an attestation that Pirelli exercised 'responsible management' of its natural rubber supply chain from plantation to production. In addition to FSC-certified rubber, the new P Zero utilizes recycled steel, which the company reclaimed in part from melted scrap metal. Rice husk-derived silica was also used in the P Zero, as the silica is a byproduct of rice production and is used in the P Zero's tread for enhanced handling in wet conditions. End-of-life tires were also included. To make the tires black, Pirelli used pyrolysis oil from scrap tires, which is obtained via a process of rapid heating and cooling that essentially extracts the oils from the used tires. The same pyrolysis oil derivative was used in the tire polymers. Finally, plant-based bio-resins help optimize dry and wet performance for the new P Zero. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. If you want the new P Zero, you'll need a Range Rover Developed for JLR (Jaguar Land Rover), Pirelli states that the new tire will only be available in a 22-inch wheel size. The mostly-recycled P Zero will 'initially be available on selected' Range Rover vehicles, but it's unclear whether the tire will be an optional add-on for buyers or if it will be standard for Range Rovers with 22-inch wheels. It's not the first collaboration between JLR and Pirelli, either. In 2024, JLR equipped some of its cars with Pirelli tires that contained 110 percent FSC-certified natural rubber. The new P Zeros will feature FSC markings and a 'distinctive logo' denoting that the tires contain more than 50 percent bio-based recycled materials, which is verified by the third-party certification body Bureau Veritas. Range Rover Evoque — Source: Jaguar Land Rover Final thoughts There's no doubt Pirelli ran this tire through its paces, both virtually in its design and development phase as well as in real-world testing. If any company has mastered high-performance tire manufacturing, it's Pirelli. Even so, it's unclear how recycled materials will hold up over the long term, but if all goes well, we could be looking at a breakthrough in the future of tires. About the Author Nate Swanner View Profile

The sneaky way Anthony Albanese will turn Australia into a high-taxing European nation with new super tax
The sneaky way Anthony Albanese will turn Australia into a high-taxing European nation with new super tax

Daily Mail​

time44 minutes ago

  • Daily Mail​

The sneaky way Anthony Albanese will turn Australia into a high-taxing European nation with new super tax

Anthony Albanese risks turning Australia into a high-taxing European nation with his plan for a radical new tax on superannuation savings, an investment group warns. The federal government wants to impose a new 15 per cent tax on unrealised gains on super balances above $3million, where capital growth would be taxed before assets are sold. Wilson Asset Management chairman Geoff Wilson said this departure from taxing capital gains after assets are sold would see Australia share a similarity with European nations, which are renowned for their high taxes and targeting the rich. 'Australia is proving to be no different from Norway, Spain and Sweden, where taxing unrealised gains led to capital exodus and therefore lower than expected tax revenue,' he said. In 2023, the Labor government announced that from July 1, 2025, 0.5 per cent, or 80,000, of super balances with more than $3million would be hit with a new 15 per cent tax on unrealised gains. This would be in addition to the 15 per cent tax on earnings that already exists for all super during the accumulation or working phase. The debut of a new tax on unrealised gains also marks the biggest change to the capital gains tax since it was introduced in Australia in 1985. Previously, European nations have been the main enthusiasts for taxing the notional or paper value of assets, based on gains during a financial year. Norway applies a 38 per cent unrealised gains tax on the wealth of those who leave. Sweden does a similar thing, but with a 30 per cent exit tax on unrealised gains. Spain also has an exit tax, based on unrealised gains, if someone with a large investment portfolio leaves the country to become a tax resident elsewhere. Germany during the 1970s and 1980s taxed unrealised gains on wealth, but the policy was notoriously difficult to administer. France still has a wealth tax that applies on assets worth more than €1.3million (AU$2.1million) of real estate assets, but it stops short of taxing unrealised gains. Other European nations, renowned for having higher income taxes to fund more services, do not touch retirement savings in the way Labor is proposing to do. US Democrat presidential candidate Kamala Harris last year campaigned to tax unrealised gains on wealth - but only for the ultra rich with assets worth US$100million (AU$152million) or more. Australia would be the first to apply an unrealised gains tax to superannuation, in a bid to raise $2.3billion a year in Budget revenue. Left-leaning crossbench senators David Pocock and Jacqui Lambie last year declined to back Labor's Better Targeted Superannuation Concessions bill, because they are opposed to taxing unrealised gains. The Greens back taxing unrealised gains but want the threshold reduced to $2million, but indexed to inflation. They hold the balance of power in the Senate, and Labor is still negotiating amendments with the minor party. The government has previously flagged giving Australians a year's notice from the time legislation is passed, with Mr Wilson noting panic selling was already occurring in self-managed super funds to avoid the potential new tax. 'Despite requiring Senate approval, the proposed tax on unrealised gains has already prompted a rush to liquidate assets ahead of the 30 June 2026 implementation date,' he said. Wilson Asset Management has proposed an alternative super tax strategy to Labor's plan to tax unrealised gains, in a submission to the government's Economic Reform Roundtable, where it argued it would raise $2.433billion in revenue. 'The outcome of the proposal would allow the government to increase tax revenue from high balance accounts without breaching the realisation principle of the tax act,' Mr Wilson said. 'Our proposal is in the national interest and a Budget-positive alternative to the government's proposed policy to tax unrealised gains in superannuation.' He proposes to keep the existing structure of taxing realised capital gains, but adding a new 15 per cent tax to balances of $3million to $6million. A 17.5 per cent tax would apply for balances of $6million to $10million, rising to 20 per cent for balances of $10million to $20million and 25 per cent for balances above $20million.

Salon owner 'ready' for key L'Oréal trademark dispute hearing
Salon owner 'ready' for key L'Oréal trademark dispute hearing

BBC News

time2 hours ago

  • BBC News

Salon owner 'ready' for key L'Oréal trademark dispute hearing

A salon owner says she is "ready to fight again" ahead of a crucial hearing in her long-running trademark dispute with global cosmetics firm L'Oréal. Rebecca Dowdeswell attempted to renew the trademark of her Leicester-based business - nkd - in 2022 but the French firm opposed the move.L'Oréal has its own trademark on a series of beauty products called Naked, and claims her use of the name nkd would cause "consumer confusion".The 49-year-old said she was feeling in a "much stronger position", now an Intellectual Property Office (IPO) hearing date had been set for the case. It will take place later this year. The mother of two, from Radcliffe-on-Trent in Nottinghamshire, held the nkd trademark name since 2009, and it expired in said she had a six-month window to renew it but forgot, which she described as a "big mistake"."That six-month window ran into the start of Covid and chaos ensued for all businesses - including beauty salons - and I missed the expiry," she previously told the BBC."When I came to re-register the trademark, I was essentially starting from scratch, not renewing an existing one."She said L'Oréal objected on the basis it owned the Urban Decay make-up brand, which has a range of eye shadow palettes called added: "There has never been any evidence of consumer confusion. In 15 years of trading, no-one has ever said 'are you the same brand as Naked by Urban Decay?'"Ms Dowdeswell told the BBC the matter was due to be decided by the government's IPO, but that hearing had been IPO blamed the delay on "very significant" caseloads, in part due to said before Brexit, trademarks could be registered with either the European Union (EU) or the UK, or Brexit, 1.4 million trademarks that were with the EU transferred over to take effect in the to the BBC, Ms Dowdeswell - who has spent more than £30,000 contesting L'Oréal's opposition - said she had "enjoyed" a temporary break from the proceedings. "When I came to re-register them post-Covid, L'Oréal logged its objections and I've been having to defend myself for the last three years," Ms Dowdeswell said."It's been really stressful to deal with, but I've enjoyed metaphorically putting it away and having a break from it."In hindsight, I realised how much of a toll it took on me last year. On me personally with my family, my young children and with the business."I am ready to fight again. I think L'Oréal thinks I'm just going to go away - and I'm not." In response, a spokesperson for L'Oréal said: "We are wholly committed to resolving any misunderstanding there might have been with Rebecca Dowdeswell."From the beginning of our exchanges with her lawyers in 2022, we have communicated an offer that supports her business aspirations whilst respecting our longstanding trademark rights."We look forward to resolving this matter in a mutually agreeable way."The IPO confirmed a hearing date had been set for 5 added a decision would usually be expected about nine months Dowdeswell added: "To coin a phrase that L'Oréal knows very well, I've often asked myself - 'is it worth it?'"

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store