How much do I need to retire?
What do you envisage your retirement to look like? Do you see yourself lounging on tropical beaches, or are you looking forward to the quiet life at home? How much of your mortgage is left to pay off, do you have outstanding debts and how independent are your children and grandchildren? These are all factors that need to be considered when establishing, how much do I need to retire?
Unless you have ideas for a supplementary income, you are going to need a pension pot big enough to support your entire retirement. The optimum savings amount for a pleasant retirement is widely argued. A Which? survey questioned thousands of retired couples and discovered that between them;
“Households spent a shade under £2,200 a month, or around £26,000 a year.”
A study from Saga quotes a slightly more expensive figure for an individual;
“£15,000 a year is the amount we should be aiming for to guarantee a comfortable retirement.”
Retirees are entitled to £7,500 per annum, on a single tier state pension. This means that you would need £7,500 from a private pension to reach the £15,000 figure. To make this a reality, you would require a savings ‘pot of £125,222 for a standard annuity based on an average 65-year old.’
The exact amount you will need for retirement will vary from one person to the next. Individual spending habits, including luxuries such as holidays, new cars and a current wardrobe will all impact on the amount of savings you will need.
The sooner you start to think about your retirement and getting a plan in place, the easier it will become for you.
If you are unsure about how much you should be saving, or wondering if you are on the right rack, we would advise speaking with a professional. A financial adviser will be able to help you discuss your realistic options and what steps to take to guarantee you have the retirement you want.
We can help
If you are reading this and beginning to fill with nervous apprehension about the substantial numbers, we can help. We have discovered that there is approximately £400 million in unclaimed UK pension savings. Some of these savings could belong to you. One in five people who possess multiple pension policies have lost track of at least one of them.
To find out if you are owed any lost pension savings, search for FREE at monimine.com. Any money you discover can go towards you living the retirement you dream of.
Josh Cousens – Monimine.