Telegraph Money on the pension you need to fund the retirement you want
The idea of finally retiring from work may fill some with joy – but it can also be a great source of anxiety. It is all well and good to dream of long summers, holiday homes and big family trips, but how much money do you need to fund a new life without a salary?
An oft-cited rule of thumb is to multiply your working salary by 10. But the goal posts will move depending on when you want to stop working, your health and what kind of retirement you want.
Ian Cook, of the wealth manager Quilter, said: “In days gone by, defined benefit pensions meant that people typically didn’t need to worry about their pension income running out because they got a guaranteed income for life.
“Now, in the world of defined contribution schemes, you need to carefully balance how much you want to have for your retirement and how long you want it to last for.”