When saving for retirement, you’ll need to work out how much money you’ll need to save in order to live comfortably. This may seem like a daunting task due to all the factors you’ll need to take into account.
What should I be taking into account?
When working out how much you’ll need, the most important factor is time. You’ll need to work out how long you will need the money for, taking into account the age you wish to retire and the length of time you expect you will need to be covered for. You will then need to take into account any expenses and how much money you intend to spend during your retirement.
How can I work out how much I will need?
A great way to work out a rough estimate of how much you will need to save for your retirement is to work out your desired annual income. You will then need to multiply this by the number of years you expect to be in retirement.
Often, many people use the number 25 as a way to cover the average number of years most people will expect to need their retirement pot for. You will need to take into account any potential expenses and whether you’re looking to spend on luxuries like holidays.
In order to work out a more accurate estimate for your retirement income, it’s important to speak with a local pension adviser regarding your desired income and how this can be made feasible.
If you’re looking for help investing for retirement and retirement financial planning advice, contact our local financial adviser team today. Please call on 01926 492406 or email us at firstname.lastname@example.org to make an appointment.