When starting out on the working ladder, very few of us think ahead to retirement, with many of us still failing to consider and plan ahead for retirement well into our thirties and forties.
However, a recent study of twenty-five to thirty-four year olds has revealed that this age group has very unrealistic expectations about the financial situation facing them, come retirement.
According to the study, a third of those who participated expect to have a retirement income of £30,000 a year, despite only one in ten already saving.
For a twenty-five year old who plans to retire at the current retirement age of sixty-five, to have a retirement income of £30,000, they will be required to have a pension pot of £600,000, which equates to saving at least £400 per month.
For someone at the top age of those who participated in the study to reach a retirement income of £30,000, they will also require a pension pot of £600,000, which equates to saving at least £750 per month – with these figures assuming a five percent annualised return.
Whether you are one of the twelve percent of twenty-five to thirty-four year olds who have started planning for their retirement already; or if, like many you haven’t thought about financially planning for the future, myself and the team at Milsted Langdon are on hand to offer valuable, tailored and honest advice.
As part of the services we offer to help you plan for the future, we offer a Pensions Review Service which has been designed to help you understand your pension, by providing you with a clear and concise summary of your pension.
The team at Milsted Langdon are also on hand to answer any questions you may have regarding pensions and we will also advise you on your options for achieving a better retirement.
Milsted Langdon Director, Peter Groves, specialises in strategic business and tax planning, services for high net worth individuals and professionals.