What is pension planning?
Most of us pay into a workplace pension. It’s a contribution you might notice on your wage slip, and not think too much about. But it’s never too early to start considering if you’re on track to have enough money to achieve your retirement goals, and if you could be doing more to prepare.
Our Pension Review Service
At Skipton, we’re helping thousands of people plan towards a fulfilling retirement. Our team of financial advisers are ready to do the same for you.
Our Pension Review Service could give you a clearer picture of how much money you’re on track to achieve in retirement.
We’ll carefully review what you have, including any defined contribution pensions you have from old jobs. This includes checking their performance, future prospects and any valuable benefits they offer.
Where you require advice on existing investments/pensions the minimum value required, including the investments/pensions under review, is £50,000.
How much do you need in a pension to retire?
That’s the big question. And the answer is…it depends. Your retirement goals are personal, and you ideally need enough money to achieve what matters to you.
To achieve a comfortable retirement lifestyle, you’re likely to need more than £200,000 saved up in a pension. That might seem like a lot. But it is possible.
An illustrative example
- We’ve assumed your underlying pension investment will grow by an average of 5% a year. If your investments grow by a lower amount, you would need to save more to achieve your target. Please note this is an illustrative example only.
- We’ve also assumed you’ll retire at 65.
- Contributions are before tax (i.e. gross). It is also based on a single life pension and doesn’t factor in the rate of inflation.
One thing is certain – the sooner you pay more into a pension, the better chance you have of achieving the retirement you deserve.
The following table shows how much you’d need to save in each month to reach a certain target, depending on your age.
|Target value at 65
||From age 30
||From age 40
||From age 50