Planning Your Retirement - In Your 40s
18 August 2017
With around 20 years left until you retire – if you’re lucky! – now could be a good time to have a look at your pension pot and review how it is invested.
Hopefully, at this stage of your life, your earning power will have increased, childcare costs decreased and big outgoings are under control, for example, your mortgage. You should be able to take a higher level of risk with your investments after building up a solid base.
If you haven’t already started saving for your retirement, it is crucial to act now. Consumer watchdog Which? estimates that the average person needs an annual income of £26,000 in retirement.
Based on current retirement ages and state pension entitlements, individuals starting to save from scratch now would need to be saving the following amounts each month to generate £26,000 per year in retirement:
|
Age |
Saving for |
State Pension Age |
Amount to Save (Monthly) |
|
20 |
48 years |
68 years old |
£131 |
|
30 |
38 years |
68 years old |
£198 |
|
40 |
27 years |
67 years old |
£338 |
|
50 |
17 years |
67 years old |
£633 |
Talk to a trusted Financial Adviser or give your Accountant in Daly Park a call if you want more individual advice.