When I'm talking to clients about their pensions, one of the most commonly asked things is "What do I think they need to have in their pension?”
The trouble is this is different for everyone, and it comes down to one thing…
And that's lifestyle.
For most people, and admittedly this is a huge generalisation, the state pension is almost enough to cover your basic living needs.
The state pension in this current tax year is £221.20 per week. That equates to £11,502.40 per year.
So assuming that you aren't paying rent or a mortgage, this is enough to cover your utility bills, council tax, and possibly a basic food shop.
Anything else that you have in pension schemes, investments, savings, this is what is going to determine the type of lifestyle that you can lead, how often you eat out, what type of traveling you want to do, how much you can spend on your hobbies or your socialising.
And this is where financial planning really comes into its own.
We can tell you based on what you have and the type of lifestyle that you want to lead, how long that money is going to last you.
And remember, this isn't money that you need to last you for the rest of your life. Your lifestyle at age 90 is going to look very different to your lifestyle at age 70.
I want you to be doing the things that you want to do whilst you are still healthy enough to do them.
I mean, if you desperately want to, you can go and Google average pension amounts or the rule of 25, but all the strategies and averages in the world won't matter a job to you personally.
This is your life, and only you can decide what you'd like that to look like.
If you’d like some help planning your retirement income, book your financial planning appointment today!
Willow Tree Financial Services are a Financial Adviser based in Polegate, East Sussex, UK. We specialise in Financial Planning, Mortgages, Investments & Pension Planning, Protection & Insurance Wills, Trusts & Estate Planning.
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The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.
