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Could just £40 Per Week Give You a Happy Retirement?

Saving for retirement might seem like a herculean task, especially if you’re only just starting out in your career. But no matter how far off it seems, it’s important to begin planning and saving for retirement – even if it’s only small contributions – as early as possible.


This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.


Even those that delay saving until they’re established in their careers might find it difficult with all the other expenses they regularly need to deal with – a mortgage, children, home repairs, car loans. But they don’t necessarily need to be haemorrhaging money into retirement savings plans to catch up to early savers. Official avenues should certainly be explored, but don’t forget about secondary methods to help you save as efficiently as possible.


How much should you save?

It’s critical to understand just exactly how much you’re aiming for so you can work out what your contributions should be and for how long you’ll need to save.

Which? And Tilney suggest that the average retired couple needs approximately £26,000 per year for moderately spending households from the ages of 65 to 75. With tax factored in, you’ll need a little bit of a cushion of £26,750.


Pensions

While it shouldn’t be the only element of your retirement plan, your pension will be the foundation of your income during retirement. The state pension is now approximately £8,300 per individual each year (£159.55/week). For a couple, that amounts to about £16,593, which leaves the gap at about £10,000 annually to bankroll your desired retirement lifestyle.

If you and your partner only start saving at 40 years old, you’ll need to put away a supplemental £169/month individually, and £338 as a pair. This works out to just £39 per week.


Saving just £40 per week might make all the difference in securing a comfortable future.


If you’re unsure if even that small amount might be unmanageable, review your current expenditures to ensure you don’t feel the impact in the present. After less than 30 years of saving, a couple should have enough of a retirement savings fund to draw down the supplemental £10,000 a year for the foreseeable future. If you expect a reduction in spending after a certain age, you might even get away with saving even more conservatively, but it’s always better to be safe than sorry!


Get in contact with us

It’s important to remember that these calculations are based on the perfect, straight-forward situation and many people might not be so lucky. To ensure your long term future and retirement is secure no matter what your current or potential short-term prospects are, get in touch with retirement planning experts. Call our team at Dental & Medical Financial Services.


Want help to save towards your retirement?
Investments | Financial Planning | Retirement | Save Tax | Protection |

Dental & Medical Financial Services have been helping doctors and dentists to build and protect their wealth, whilst saving tax for over 25 years.
Call Darren to discuss your options.

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