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How much Do i need to save for retirement?

Retirement Savings Calculator

Need help getting your retirement plans on track? Arrange your free introductory call with an Independent Financial Adviser today.

Our retirement savings calculator is designed to give you a rough idea on what you might need to invest and save each month in order to reach your retirement goals. Our specialist retirement and pension planning team can also provide in-depth analysis and advice tailored to you. We’re here to help every step of the way. 

UK Retirement Savings Calculator

Our retirement planning and savings calculator provides a retirement income estimate based on what you save and invest each month.

 

It’s based on your lifestyle, financial commitments, and investment returns. Our calculator for retirement savings is not designed to replace professional advice, always talk to a qualified financial adviser before you make any pension decisions. To get advice now, please contact us.

TABLE OF CONTENTS
    Retirement Savings Calculator

    Am I saving enough for retirement?

    With UK household savings at their lowest since records began in 1963, many people aren't saving enough for retirement and could be sleepwalking into a life of poverty.

    In fact, according to the Pensions and Lifetime Savings Association (PLSA), 8 in 10 brits fear they may not be saving enough for retirement. Our retirement savings calculator is designed to help you understand how much income you could have in retirement at your current rate of savings.

    If you don't know how much you'll need in retirement, we have a host of resources available for you, try our retirement cost calculator or check out How much do I need to retire? or What's a good retirement income?

    User Guide for our Retirement Savings Calculator

    Want to know how to get the best out of our retirement savings calculator? See our user notes below:

    Speak to a financial advisor

    No commitment, no hard sales, just a quick chat with one of our independent financial advisors to see if we can help

    How You Can Use Our Retirement Planning Calculator

    You can use our retirement planning calculator to estimate the size of your pension pot based on your current rate of savings and you can adjust your monthly savings figure to see how that could affect the size of your pension pot in retirement.

    You can also see how adjusting your retirement age might affect the size of your pension pot, since the longer you save, the more you will have in your pension.

    You’ll also be able to see how both of these factors affect your likely monthly income in retirement.

    How This Retirement Savings Calculator Can Help You

    There are a number of variables in retirement planning that are within your control, the two main ones are the age at which you retire and the amount you choose to save now. This calculator will help you see what impact these two things can have on your retirement plans and your likely income in retirement.

    If you’re in a couple you can use our simple couples retirement calculator to work out how much you’ll need every year in retirement, based on the lifestyle you want to live. We also have a retirement cost calculator dedicated to singles. Both use UK based average costs to make your retirement planning easier.

    How Much Will You Need to Retire?

    Planning your expenses in retirement can be a daunting task, especially if you’re planning years ahead, so we’ve created the world’s easiest retirement calculator to help you work out how much you’ll need. We also cover 3 simple ways to work out how much you need in retirement in our cost of retirement blog.

    We’ve also compiled some industry estimates for what you’ll need in retirement here>>

    good retirement income estimates

    How Much Should You Save for Retirement?

    Ultimately, a simple retirement savings calculator like this is not detailed enough to base your retirement plans on, although retirement calculators can be a good place to start.

    How much you need to save is relative to

    • the amount of income you want in retirement,
    • what age you plan to retire at,
    • how much you can afford to save (and for how long)

    as well as

    • your investment choices and
    • risk profile.

     

    In our article “What is a good retirement income?” we explore Minimum Income Standards in retirement as well as UK average retirement income and how to sustain your current living standard in retirement.

    We’ve also put together some use calculators that will help you work out likely retirement costs in our post How much do I need to retire?

    Download our free expert guide to

    A comfortable retirement

    Discover everything you need to know about planning a comfortable retirement in our expert guide

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    Saving for Early Retirement

    Pensions are the most tax efficient way of saving in the UK, especially if you’re a higher rate taxpayer, so it’s best practice to save into a pension first before exploring other options like ISAs.

    However, It is important to know that if you are investing in a pension, you will not be able to access it until you are 55. If you plan to retire before 55 then you should speak to a financial adviser to create a plan that will still provide tax-efficient savings and also allow you to reach your financial goals.

    Need help with your retirement plans?

    Arrange your free introductory call with an Independent Financial Adviser today.

    NOTE:

    This retirement and investment calculator is provided for general information purposes only. It is a guide and does not reflect the actual amount that you will need in retirement.

    Any information contained within this website should not be deemed to constitute financial advice, and should not be relied upon as the basis for a decision to enter into a transaction, or as the basis for any financial or investment decision. It is provided for general information and it is vital (and in most cases a regulatory requirement) that you contact a Financial Adviser for tailored professional advice in regard to pension and retirement planning.

    • No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.
    • If you are a member of a pension scheme with safeguarded benefits, it is likely it would be in your best interests to retain the safeguarded benefits.
    • Make sure you understand all the risks before investing.
    • The value of investments and the income they produce can fall as well as rise and you may not get back your original investment. Past performance is not a reliable indicator of future results.

    FAQs

    What are the steps in retirement planning?

    Retirement planning doesn't have to be complicated, with the right plan in place, and the right support, your dream retirement can feel like a breeze. 

    We've laid out some simple steps in retirement planning below, but if you get stuck, just reach out and one of our retirement planning specialists will be happy to help you:

    1. Decide what type of retirement you want to enjoy
    2. Set a retirement date
    3. Work out a retirement budget based on what feels like a good retirement income for you.
    4. Request a pension forecast - request your state pension forecast here https://www.gov.uk/check-state-pension 
    5. Get your pension estimates - track down old pensions with the Pension Tracing Service (0800 731 0193)
    6. Talk to a Financial Advisor to create a retirement plan, work out how you will pay down any debt and if it's worth consolidating any old pensions
    7. Put your retirement plan in action and look forward to enjoying your retirement.
    8. Don't forget to periodically review your plans every year to make sure you're on track, because circumstances can change and the earlier you respond the more time you have to course correct.
    How much do I need to retire?

    Industry estimates reckon you’ll need anywhere between £10,000-£30,000 per year for a single person in retirement and at least £17,000-£40,000 a year for a couple in retirement.

    But these figures are estimates based on averages. 

    good-retirement-income-estimate-chart-2019

    A better way of working out how much you need to retire is to look at home much you're currently spending per year and use Target Replacement Rate to work out how much you'll need in retirement to sustain your existing standard of living. 

    Target replacement rate states you'll need anywhere between 50-80% of your pre-retirement income to mainstain a similar standard of living in retirement

    Target replacement rate table

    Of course, if you plan on living a completely different lifestyle in retirement then you'll need a more bespoke appoach to working out how much you'll need to retire. 

    Try our retirement cost calculator for couples, or our singles retirement cost calculator.

    Read more in our full guide to How much you need to retire

    What are the types of retirement?

    Retirement isn't a one-size fits all affair anymore, there are lots of choices about how you can spend your golden years.

    There are 5 types of retirement you could consider

    • Early retirement
    • Mini retirements
    • Semi-retirement
    • Phased retirement
    • Traditional retirement

    You can find out more about the different types of retirement here

    Can I Retire at 55 with £400k?

    You can retire at 55 with £400k in the UK, as this might reasonably give you £12-16K income a year sticking to the recommended 3-4% a year safe withdrawal rate.

    However that barely covers minimum income standards in the UK for a single person and is less than the £18K a couple will need for a basic retirement according to industry estimates.

    If you can live on 12K-£16K per year. Great. But if your income needs are greater you might struggle. For instance, if you plan to take 50K per year your pension pot will be gone in around 8 years. So you need to do your homework before you make a decision.

    Read the full article

    Can I take my pension at 55 and still work?

    If the idea of early retirement appeals to you, but you don’t quite have the retirement savings to fund a full early retirement, you might be looking for other solutions. 

    The Pension freedoms announced in 2015 allow you to access your private pension pot from 55, which offers a whole world of flexibility in terms of retirement age and working in retirement.  You might be surprised at the number of options that are available to you for taking a pension early and continuing to work.

    You can take your private pension at 55 and still work. And if you have a defined contribution pension you could access part or all of your private pension at 55 to fund a phased retirement or early semi-retirement but there are tax implications of doing this.

    Want to know how much you might pay on a pension lump sum? Click here for 5 of the best calculators.

    As soon as you take your pension as income you'll trigger the Money Purchase Annual Allowance, even if you later opt to stop taking an income from your pension. This has massive implications for the amount you can pay into your pension and still receive tax-relief on,

    Learn more about the Money Purchase Annual Allowance.

    Need help? Schedule a call to talk to one of our expert IFAs.

    Do I Need a Financial Advisor for My Pension?

    The increased choice and flexibility for accessing your pension in the UK has brought with it added responsibility and risk. Many people are now also questioning whether they need a financial adviser for their pension. A study of those with pensions in flexi-access drawdown, carried out by insurance giant Zurich, found that​​​​​​​ a large percentage were unprepared and uneducated about the risks they were taking on. Despite that many were choosing to go it alone without consulting a financial adviser. 

    You don’t need a financial advisor for the state pension or guaranteed pensions. But if your pension is based on investment performance it would be a wise move. Zurich estimates that almost 41% of those in drawdown without advice will run out of money in retirement

    That’s not to say that you absolutely need a financial adviser but the evidence published by Royal London in 2019  suggests that you’ll be wealthier in the long-term if you have one.

    Financial advisers don’t have a crystal ball when it comes to investing, but they have been trained to take into account all of the moving parts that make long-term financial planning so complex.

    Need more reasons to work with a financial advisor? Read the full article here

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    We work with clients of all ages and lifestyles - it’s the beauty of what we do.
    No matter where you are in your retirement planning journey, we’re here to help you.

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