It’s hard to put an exact figure on how much a person might need, but it’s fair to say that you will need at least 40% of your current salary to ensure your standard of living is maintained in retirement. This, of course, presumes that you won’t have a mortgage to pay by then, which is often the biggest part of our monthly expenditure while working, as well as being free of any children or other dependents living with us.
Lifestyles are changing though. With the current housing difficulties and the rising cost of living many people are predicted to be entering retirement before they have finished paying their mortgage and often with the fear that adult children may still be living with them as they struggle to get on the housing ladder.
Additionally, the cost of living is rising too and in parallel with rising life expectancy. People are living longer than ever but the cost of enjoying that life has never been more expensive. If you want to enjoy your retirement, now is the time to start panning for it.