When planning for the future, understanding how much money you’ll need to live the lifestyle you’re hoping for when you retire is key.
How much income will I need in retirement?
Saving as much as you can into a private pension, starting as early in your working career as possible will ultimately help you to set yourself up for a comfortable retirement. However, having an ultimate goal in mind can help to keep you on track.
According to Pensions UK, to achieve a minimum living standard, a single-person household will need £13,400 per year. You’ll need £31,700 per year to achieve a moderate standard of living or £43,900 for a comfortable retirement.
How much will I need to save?
Let’s take that £43,900 per year figure to understand how much you’ll need to save, assuming you will also receive the full new state pension.
If you’re planning on using a pension drawdown, you’ll need around £609,270. If you are planning on buying an annuity, as a single-person household, you’ll ideally need to save £505,000.
Other important considerations
As part of your retirement planning process, it’s also important to consider things like the UK power of attorney. In the UK Power Of Attorney will enable you to appoint a person you trust to appropriately make decisions on your behalf, if illness or an accident prevents you from making decisions yourself.
It’s one of the smartest and safest ways to protect both your own future and your loved ones, and is well worth looking into as you’re looking ahead to the future.
