How much should I save for my retirement?
Many individuals tend not to place an emphasis on building a retirement pot because often they are unsure about how much money to set aside, or how and where they should be saving it.
Research from Royal London shows that someone aiming to retire at 65 with a pension of £300,000 would need to save £430 per month if they started saving at 25.
This monthly saving would, however, need to grow to £630 per month to achieve the same final pension amount if saving was delayed until age 35. If saving only started at 45, then they’d need to put away £1,050 per month.
Although these figures are startling and show that it clearly pays to start saving for retirement sooner rather than later, there is definitely no ‘one size fits all’ solution when it comes to retirement planning, and the question of ‘how much should I be saving each month?’ will have a different answer for every individual based on their circumstances.
When planning for retirement, it is important to consider seeking support and guidance from an experienced financial adviser.
Typically, your adviser will work with you to establish a clear understanding of what income will be required to support your proposed retirement, when the planned retirement date is and what assets are already in place.
With this information, advisers can build a cashflow model, using sensible assumptions, to work backwards and highlight what you should be saving. This clarity is often what is needed to spark the appetite to build and implement a clear financial plan for retirement.
We all deserve the opportunity to understand how to secure our financial future, and working hand-in-hand with a professional adviser can be a great place to start.
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