How much to save for retirement

Knowing how much you need to save for retirement is based on a number of factors, many of which will be individual to you.

According to our polling of over 30,000 people, £23,000 is needed annually to live comfortably in retirement. However, people in the UK are on course to receive just £6,000 once they retire.

The actual amount you will need in retirement will depend on a number of factors, including:

  • The outgoings you will have in retirement — usually, outgoings are less at the beginning of your retirement, as by then you might have paid off your mortgage or your children may have moved out. However, as you age, you may need to pay for care, meaning you may require more funds in retirement.
  • The amount you’ll receive from your State Pension — you can use your State Pension to essentially top up your retirement fund. At present, the State Pension is £122.30 per week, although this does increase ever year. You’ll need to reach State Pension age before you can access these funds, so keep this in mind when planning for your retirement. You can find out your state pension age at the GOV.UK website.
  • The age you will retire — naturally, the earlier you retire, the more years you’ll need to use your pension for. If you are planning to retire early, you’ll often need a larger pension pot to support you.

The age you start contributing towards your pension could impact the size of the monthly instalments you pay. If you start contributing later in life, you may have to increase the amount you contribute to meet your overall pension goal.

Start saving for your future with True Potential Investor’s personal pension accounts.

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