Enable’s IFAs in Bishop’s Stortford always recommend starting a pension as early as possible, some research by Retirement Advantage shows that even when people have saved, many still burrow their heads in the sand when it comes to the size of their pension pots.
Apparently as many as a quarter of people don’t know how much they have saved, and those that can estimate how much they think they have in a pension recon its just over £110,000, with a fifth having less than £50,000, and 12% think their pension ranges between £50,000 and £100,000.
Andrew Tully of Retirement Advantage thinks,“ retirees underestimated how much they would need in order to benefit from drawdown - and £100,000 may not even be enough to pay for retirement income.” He suggests a very basic calculation to try and work out how much you need in you’re pension pot. ‘Ask yourself what income you would like in retirement, people may say £10,000 a year, and if you expect to live for 20 years, then do some basic arithmetics, the figure you need isn’t going to be less than £200,000.’ It can be a bit of a surprise for some people.
Another tricky issue is that no one knows how long they are going to live, so even if this simple equation could be wrong if you end up living for 25 or 30 years in retirement. Enable’s IFAs in Bishop’s Stortford can help you look at what you might need in retirement and how to work towards saving it.
Issued by: Enable Independent Financial Life Planners 25c North Street, Bishops Stortford, Herts CM23 2LD Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
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