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Do I Have Enough Income to Retire Comfortably?

Making retirement plans in the UKWill you have enough money when you retire to provide for yourself and for those around you? This is actually quite a common question, for a recent study highlighted that only 48 percent had considered this topic. One reason for this is that you might be considering the overall nest egg as opposed to how much you physically need and then how this income can be supplemented by other means.

Rough Guidelines

Of course, retirement needs will vary from one individual to the next. As a general rule, many say that your retirement income should represent 80 per cent of what you are making pre-retirement. Other variables that could affect this figure include your cost of living, your expenses and even any ongoing health conditions. Keep in mind that spending habits will have a good impact here (you might spend more earlier and then settle into a more comfortable life in your later years). A final factor is any social security payments that you will be receiving. Factoring these into your post-retirement monthly income can give you a more accurate figure.

An additional consideration is any funds that you may have accrued in stocks, bonds and other tangible assets. Experts seem to agree that the “4 per cent rule” works well here. In other words, you should aim to withdraw 4 per cent during your first year of retirement and thereafter adjust this figure based upon inflation.

A Confusing Topic

By no means is retirement planning cut and dry. Not only are your income needs very specific, but unexpected situations such as a health condition can suddenly arise. At at Compare Funeral Plans UK have therefore put together a guide to the most useful information that can help you start off on the right foot. Never forget that planning ahead today can save you a great deal of worry and frustration tomorrow!

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