The Four-Step Guide To A Comfortable Retirement
We've tidied up a recent series on pensions that helps you to work out what income you'll need when you retire, what pension pot you'll need and how much you'll need to save each month to get there! It's all in this guide.
In this three-part guide in four parts*, I'll help you to work out what you need to save for retirement.
I suggest you carry out this exercise at least once a year, to ensure you remain on track for a comfortable retirement. It may take a couple of hours to complete, but that's time well spent!
1. Work out what retirement income you need
In part one, I'll show you how to work out what annual income you'll need when you retire:
You Can Retire On Less Than You Think
2. Adjust your income for rising prices
In part two, you'll learn how to add on the cost of rising prices (inflation) to your target annual income...It's not as scary as it sounds!
The Menace Of Inflation On Your Pension
3. Work out what pension pot you need
In part three, you'll use your workings from part two to find out how large a retirement pot you should be aiming for:
Work Out What Pension Pot You Need
4. Work out what you need to save each month
And finally, part four shows you how to work out what you need to save each month in order to get your target retirement pot:
How To Retire In Luxury
Ready? Great! Go to part one. If you need help at any stage of this exercise, ask the wise Fools on our Pensions - Practical Problems discussion board.
*It'll all become clear by the end.
Most Recent
Comments
-
In my circumstance i belive i was lucky to take early retirement at 50 from my final salary pension takeing a lump sum and a reduced pension by about 50 % this sould not deter you as i have since reecived around £60.000 pounds this should reach £120.000 by the time i am 65,as this pension grows by 4% a year, this money can be invested to give you a nice pot by the time you reach normalretirement age and who nows what that could be. again i was lucky to take up another career with a well known DiY company that has two letters of the alphabet & in the middle.The only drawback is you will pay tax at BR1 but it is worth the loss to have such financial security and a choice of when i want to finnish work. I have since joined the share save sceme with this company and am already on to a winner hopefully. last word we have no idea how long we are around for, the old proverb a bird in the hand is worth two in the bush springs to mind.
REPORT This comment has been reported.
Do you want to comment on this article? You need to be signed in for this feature
18 September 2010