The cost of retirement
1 June 2007
How much must you save today to prepare for tomorrow? Is it more or less than you think?
How much should you save for your retirement? There’s a simple answer and a more complex one. The simple answer is that you should save as much as you can. Then your retirement will be as comfortable as you can make it.
However, you can only save what you can afford and that’s where your calculations can get a whole lot more complicated. It’s a delicate balance.
- How much should you save?
You could start by looking at what you earn today - When do you want to retire?
Investments take time to grow, so you need to plan well in advance - What kind of retirement do you want?
You need to find the balance between what you want and what you can afford - How do you get the balance right?
You need to find the balance that's right for you
- What should you invest in?
Shares, bonds, property or cash? They all have a different role to play - What return can you expect?
Investment returns are hard to gauge, but a 'rule of thumb' applies
- How much will you actually need?
The good news is, it could be less than you think - An impossible task?
A comfortable retirement is within your reach if you start saving and stay saving
- Where do you start?
You will need expert financial advice, but right here is a good place to start
