Here’s How Much You Should Be Saving For Your Retirement
It’s true that we’re feeling the crunch of the economy more than ever, buying a house is becoming more and more unobtainable, so of course sometimes it’s much more fun to just enjoy being young rather than worrying about the future. However, according to a new survey if we want to enjoy life when we retire, then we need to start saving now.
Consumer group Which looked into the requirements of a comfortable pension and found that couples need £18,000 for basic living and £26,000 for holidays and a social life. Which worked out that in order to enjoy that amount of money annually, it would require a savings pot of £210,000 in today’s money, and that’s alongside the state pension – eek.
Using current retirement ages and state pension allowances, Which calculated that the figure 20-year-old couples would need to save each year to reach this goal is £131 a month combined. The report found that savings would need to be increased to £198 a month for couples starting at the age of 30, £338 a month starting aged 40 and £633 a month starting aged of 50. When it comes to saving for your retirement: it’s clear that we need to start early and save often. Being a part of your company pension scheme is a good start, but, depending on how much you contribute, you could well need to save more to have the lifestyle you want in retirement.