Exactly how much money you’ll need to enjoy a comfortable retirement depends mainly on two things:
- The length of your retirement
- Your income expectations
The length of your retirement will depend on when you retire and how long you live. The earlier you retire the longer your retirement is likely to be. None of us knows how long we’re going to live, so knowing how long your pension will need to last is like asking ‘how long is a piece of string?’, which makes retirement planning a bit tricky. Since none of us has a crystal ball, it’s not an exact science, but, we can use average life expectancy as a best guess to inform our retirement decisions and plan accordingly.
Being more informed about how much longer you potentially have to live is no bad thing, especially when it comes to financial planning. People are living longer and needing to fund longer retirements. On average, people in the UK aged 55 today will live to their mid-to-late 80s. Around 1 in 10 men and 1 in 5 women this age will live to 100 – and receive their telegram from The Queen.
HOW LONG ARE YOU LIKELY TO LIVE?
Enter your details below in our calculator and find out your life expectancy, your chance of living to 100… and how long you’ll likely need to make your pension pot last.
RETIREMENT PLANNING NEXT STEPS
- Set a retirement date (find out more about the importance of setting a retirement date )
- Work out what retirement income you’ll need every year
- Work out if your current retirement savings are on track to provide you with that kind of income
- If your plans aren’t on track or you’re not sure, talk to a financial adviser about setting up a personalised retirement plan to get you where you need to be