Saving for retirement can be challenging, but even small contributions can grow significantly over time. For example, putting £50 a month into a self-invested personal pension (SIPP) could build up to around £20,000 in about 16 years, while increasing that to £100 a month could reach the same amount in roughly 10 years. These estimates depend on how well the investments perform and the fees involved. It’s also important to note that pension savings are generally not accessible until age 55, and this age will rise to 57 from April 2028. A SIPP allows individuals to manage their own pension, selecting a provider and an investment strategy. Some platforms offer pre-made investment options, while others let individuals choose and manage their own investments. A SIPP can be used alongside a workplace pension and is especially useful for self-employed people who may not have access to employer-sponsored pensions. Zohaib Mir, a financial planner at EQ Investors, points out that while £20,000 won’t be enough for a full retirement, it represents a key step in developing a regular saving habit. Contributions to a pension also receive tax relief. For instance, a £50 contribution would get an extra £12.50 from HMRC, bringing the total to £62.50. This tax relief is calculated on the total contribution, effectively adding 25 per cent to the amount taken from one’s bank account. Sarah Coles, head of personal finance at AJ Bell, highlights the importance of starting with whatever amount is affordable and continuing to save. For those who pay 40 per cent tax, a £100 contribution would get an additional £25 inside the pension and another £25 from HMRC, effectively reducing the personal cost to £75. However, this extra relief needs to be claimed manually and depends on the individual’s income tax band. Before opening a SIPP, it’s important to check if a workplace pension offers matching contributions, which can give a head start. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, advises that contributions may stay in cash until an investment decision is made. For beginners, Mir suggests starting with a single multi-asset or globally diversified fund. Investors should also consider the fees associated with the platform, investment funds, and dealing costs. A flat platform fee, which may seem small on a large portfolio, can have a bigger impact on smaller amounts. Some platforms offer fee-free accounts, which can be more suitable for those just starting out. Once set up, choosing an affordable regular payment and reviewing it as income changes is essential. Reaching £20,000 is a useful target, and continuing to contribute allows for further growth. However, it’s important to remember that investing carries risks, and past performance does not guarantee future results.