How much money do you need to retire?

How much should you save for retirement? The answer is that it depends on the person. One person can look for a pension full of travel and the other wants something completely more modest.

This is a challenge in determining pension policy and is the problem the government will have to fight as it is about to announce its second phase of pension review, where the focus will be on eligibility. It is a job that will inform you about a state pension, as well as a workplace and a private provision in the coming years.

Excessive goals can mean smaller earners who can go beyond their pension and today financially fight risk. It could even save them completely. Having set the tape through low risk, higher earnings surviving life, believing they had done enough, and then received an unpleasant shock.

The Hargreaves Lansdown savings and the resistance barometer dealt with four basic adequacy measures to see which to help people find out if they save enough.

This included the so -called “pounds and pence tools” aimed at providing the actual number of pensioners to achieve the adequacy of pension. Pounds and pence measures include Living Wage Foundation Living Pensions Benders, which determine the level of income to meet the basic daily needs of retirement for single and merged households.

This can be seen as an absolute minimum that someone should save when retired, which sets a goal for pension contributions-as a percentage (12%) or minimum cash (£ 2,950 for full-time wages).

Read more: Basic questions to ask for a convenient retirement retirement

Hargreaves Lansdown also evaluated the minimum, moderate and comfortable living standard for one and household income.

The study examined the so -called relative measures such as targeted modifications, which have set income levels of retirement on the basis of retirement revenue. For example, they can say that someone has to save enough to cover two -thirds of their salary at first.

The current pension spending measure was also used. This determines the level of income in retirement, using current pensioners’ costs by income group, relationship status and term status.

By setting your pensions, you can help you find out how much you need. · Adamkaz via Getty Images

The analysis of these measures found using pounds and pensions may not reflect the current bigger -earning life standards and could therefore involve them in a false sense of security. They can also give the impression that smaller earning workers are behind when they really do not need to achieve higher goals to maintain their current lifestyle.

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