 How much you'll need personally, to live on each year How much State Pension you're entitled to The best way to research your retirement planning options is to speak with an adviser. However, if you are looking for a rough estimate for a good pension pot for your circumstances, there are a few rules of thumb you can use. Option 1 Some pension advisers recommend having a pension pot that is 10 times your current salary. For example, if your salary is £15,000, you might aim for a pension pot of £150,000 to see you through retirement. Option 2 Other people follow the 70% rule, where you aim for an income in retirement of 70% of your current salary. You can then multiply this amount by the years you expect to be in retirement. For example, someone with a salary of £20,000 would need £14,000 a year in retirement. If they retire at 67, you would usually plan for their pension to last until they're 85. So 18 years multiplied by £14,000 would mean a pension pot of £252,000 at retirement. According to Retirement Living Standards, a single pensioner would need a pension income of £11,000 to live an 'essential level' li){kind=link}
How much pension do you need? Here we discuss what a good pension pot is, how it compares with the average UK pension, and how to build one
Have you ever asked yourself: How much pension do I need? Whatever your concept of what is a good pension pot, one certainty is that relying on the State Pension alone will not give you a good enough pension pot to live on comfortably through your retirement. In fact, even the average UK pension pot may not be enough.
In this article you can learn what a good pension pot looks like and how to assess if your pension savings measure up. Moreover, if you want to improve your retirement income, you can look at building a modern pension plan via the Telegraph Media Group Pensions Service , provided by Profile Pensions.
The main things to consider when working out what size pension pot you’ll need in retirement are:
The best way to research your retirement planning options is to speak with an adviser. However, if you are looking for a rough estimate for a good pension pot for your circumstances, there are a few rules of thumb you can use.