The short answer is, there’s no right or wrong way and it’s going to look different for everyone. Some financial experts offer a formula to help you calculate your pension which is handy, however I believe in order to work out how much you need to put away, you need to know what you’re working towards. How much do you actually want to retire on and what type of lifestyle do you want? Getting clear on these questions will help you understand how this transposes into financial habits in the now.

This is part 2 of the pension series and today I’m going to be answering the question “should I be saving money in a pension or an ISA?”. It’s normal to feel overwhelmed and confused by your options, however when you understand the pros and cons, rules and features of each product, it will help you make a decision that is right for you.

With all pension schemes, your money is being invested on the stock market into pension funds. If you understand investing and how the stock market works, you will feel so much more confident in how you are building wealth over time for your retirement.