Henry Youngman once said: “I’ve got all the money I’ll ever need, if I die by four o’clock.” That’s quite a timeline! And while we’re confident that everyone reading this post has much more money in their bank account or savings pot than is enough to last them till mid-afternoon (relax; you aren’t leaving this world that soon), it really calls for the thought-provoking question: how much numbers are actually enough?
This isn’t an easy question to answer to be honest. Retirement life is like a clean slate, and you can choose to live it however you may want. What you then decide will determine how much money you need to keep aside to make for a financially peaceful retirement.
If you’re a proper party pooper, you may well be planning to live a dull existence. In that case you’ll need less money. Don’t worry; we aren’t judging you.
However, if you’re planning to rock up on offshore beaches and islands, you’ll most certainly need a heavy pot to live your retirement dreams.
Also, since you won’t be going to work, you should be able to save on lunches and travel costs. But if you’ve had a busy social life and plan to continue with it, that’s one expense retained on your monthly budget.
Meanwhile, with all that free time at your disposal, you may want to pursue your hobby(ies) more regularly. If so, that’s where you could be spending more. Don’t worry though, for there are potentially big savings to be realized in mortgage payments and money that you’ve previously been spending on your children.
If you’re still struggling to reach an estimated figure, try using the 25x pension rule. This is how it works:
If you think saving won’t be enough for you to accomplish your goal, you can invest your money in a stocks and shares ISA to quickly build up your retirement fund while keeping your investment sheltered from the taxman.
Interested in opening a stocks and shares ISA account?
Contact us; our team would be happy to serve you.
Risk Warning - All investments carry risk and prices may change quickly. The value of your portfolio can go down as well as up. Past performance will not necessarily be repeated and is no guarantee of future success. You should carefully consider in light of your financial resources whether investing in stocks and shares is suitable for you. This notice cannot disclose all of the risks and other significant aspects of investing in equities, derivatives, bonds or any other investment product. A full list of risks will be provided for the products which you are interested in. For more information please contact one of our team.