If you’re thinking about retiring soon, you might be worried about how much money you need to have saved to keep you living your lifestyle. We’ve prepared a list of basic calculations to get you going, based on industry experts.
THE ‘MULTIPLY BY 25’ RULE
Your desired annual income in retirement x 25= how much you’ll need to save.
Example: If you’re desired retirement income is £20,000 x 25 = £500,000!
However, this rule doesn’t include a State Pension or Tax/Social Security, so you’ll need to adjust this equation accordingly.
Industry experts say that the average person should have a £300,000 pension pot saved for their retirement, to maintain their lifestyle (not including a State Pension). With these new stats, its crucial to start planning your retirement as soon as possible, so you can live a comfortable life after you finish work.