[ad_1]
A comfortable retirement is the ultimate goal for many in life, but getting there can be a significant struggle, and many have no idea how much they will need to see them through later life. However, with the cost of living skyrocketing, the ability to build up enough cash to last you through retirement is becoming more and more difficult.
The question of how much you need for a comfortable retirement is different for everyone.
According to life insurance and pensions experts Royal London, if you want a comfortable retirement, you will need something around the £20,800 mark.
For a basic retirement, you will need £10,900 per year – and for a life of relative luxury, you will need £33,600.
Sarah Pennells, consumer finance specialist at Royal London, told Express.co.uk: “Millions of people have a pension, but many people don’t stop to think about how they want to spend their time when they retire and what that could cost.
READ MORE: Britons could get their pension contributions topped up
“However, without that information, it’s hard to know if you’re saving enough for a good standard of living in retirement.”
Given that no one can predict how long they are going to live into retirement, this makes estimating how much you will need even more difficult.
Ms Pennells continues: “For most people, the state pension will be the foundation on which they build their retirement plans.
“But the state pension will only pay £9,339 a year for someone who has a full National Insurance record.”
The state pension lasts for as long as you live – unlike your own savings, which could run out if you don’t save or invest enough throughout the course of your life.
Ms Pennells said: “The most tax-efficient way of saving for retirement, that also generally benefit from employer contributions, is through a workplace pension, which can only be accessed from the age of 55 at the earliest.
“It’s easy to say that the earlier you start to save for your retirement, the less you’ll have to set aside each month, but it may be hard to prioritise saving into your pension in your twenties, for example, when there are other calls on your money.
“However, you could spend 20 years or more in retirement, which is a long time to go without if you don’t have much by way of retirement savings.
“Many people may not want to wait for their state pension age before downing tools, and will decide they want to take control.
“That involves planning and saving enough to enjoy retirement.”
[ad_2]
Source link