People in their 20s are likely to need more than £3m for a comfortable retirement , new analysis shows but if this sounds scary, there is no need to panic.

Figures from Rathbones, a leading wealth management firm, suggest the amount needed for a comfortable retirement for someone who is 25 today would involve a £3.1m pension pot .

Assuming contributions rise by 2 per cent per year and their retirement pot grows 5 per cent a year, this means contributions of £19,200 annually, its analysis shows.

Rebecca Williams, divisional lead of financial planning at Rathbones, says the figure is “shocking” and serves as a “stark reminder” of how inflation can quietly erode retirement savings.

But though the headline numbers may be very worrying, if you’re in your 20s, here’s what you need to kno

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