๐ Vanguard UK: How to Become a Pension Millionaire
Vanguard's UK retirement team lays out the maths behind reaching a ยฃ1 million pension pot.
โข A 25-year-old contributing under ยฃ100/month into a SIPP, and increasing contributions by 10% a year, could hit ยฃ1M after 40 years โ assuming a 5% annual return after costs.
โข Alternative: a flat ยฃ552/month (ยฃ6,623/year) gets a 25-year-old to ยฃ1M by 65.
โข Government tax relief adds ยฃ20 for every ยฃ80 invested (more for higher-rate taxpayers) โ but SIPP funds are locked until age 55 (rising to 57 in 2028).
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