Retirement in Chelmsford means that you need to start saving as soon as possible to ensure that your time after you complete your work is comfortable. Therefore, Laura Richardson’s latest article provides some important guidance when it comes to determining whether you are saving enough for a comfortable retirement in Chelmsford.
Figures released this year in the annual Sottish Widows Retirement Report show that the number of people living in the UK who are adequately saving for their retirement has hit a record high at 59%, up from 55% last year. Sadly the report also found that 22% of UK adults believe they will never have enough savings to retire.
According to The Independent newspaper, a comfortable amount to retire on is an income of £19,000 per annum (outside of London) which should allow for general livings costs plus one long haul holiday per year and a new car every 5 years. However, in order to achieve this retirement income, from age 24 onwards we need to save £7348 per year!
Many financial advisors state that 10-15% of your income should go into retirement funding from as early as you commence employment. However, it is advisable to make your own calculations. Andrew Douglas Wills and Legal Services have compiled the following questions to help determine how much you need to save:
- How much is your property worth? Would you consider downsizing to release funds or is a Equity Release Plan an option for you?
- Are you enrolled in a pension scheme? How much should this be worth upon your retirement based on your current investment?
- Do you have any savings already?
- If you have investments or shares, how much are they likely to be worth in the future?
- Do you have any assets that you intend to sell in order to fund part of your retirement?
- Will you have any income during your retirement such as rental income from a property portfolio?
- Will you qualify for a state pension or other benefits during your retirement?
Having assessed this, it is important to compare this to the living costs you will need to fund your retirement, by asking yourself:
- At what age would you ideally like to retire?
- What does a comfortable retired lifestyle look like to you?
- Would you like to travel, invest in a hobby, spend on dining out, excursions or other treats?
- How much of a financial buffer will you allow yourself for unexpected costs?
Answering these questions as comprehensively as possible can help give you a broad idea of how much money you will need in order to retire. However, financial forecasting can be extremely complex and therefore if you have any doubts or worries concerning your financial plans for retirement, it is crucial to seek advice from a trained professional. At Andrew Douglas Wills and Legal Services, we are proud to work alongside our trusted financial partners who offer comprehensive advice regarding your retirement plans. For all enquiries and to arrange your free initial consultation call Andrew Douglas Wills and Legal Services today regarding your plans for retirement in Chelmsford.
If you would like to keep up with our latest posts about aspects of estate planning, then please also –
Follow us on Twitter at https://twitter.com/ADouglasWills.
Follow us on Facebook at https://www.facebook.com/AndrewDouglasWills
and check out the rest of our website at www.andrewdouglaswills.co.uk/home for more information.
