How much should I save? Retirement Calculator has the answers
The first step in good retirement planning is to identify the lifestyle you desire, and then use the Principle First Pension Calculator to work out how much you need to be saving today.
Many people are surprised to find that, roughly speaking, their annual pension income would typically be around 6% of their pension pot, each year. Using the Retirement Calculator you will see that if you are starting a pension, you are 35 today, and you want £10,000 a year of pension income from age 65, then you would need to be saving £136 every month.
Explore various scenarios with the Pension & Retirement Calculator
The pension Retirement Calculator will also show you how your monthly savings would vary, for various target levels of retirement income. You can therefore use the retirement pension calculator to explore various scenarios, based on what you can comfortably afford today. The Retirement Calculator will ‘keep you real’ with regard to your expectations, no matter how much, or how little, you can afford to save.
You can also use the retirement savings calculator to see the cost of delaying setting up your pension. The rule of thumb among old pensions advisers says: ‘Every month that you delay in setting up your pension adds 10% to your contributions, to hit your target amount.’
You can enter 2 different ages on the retirement savings calculator to see the following: If you wish to have a pension income of £12,000 and are starting now aged 25, your monthly savings must be £76. If you delay by 10 years, and start saving at 35, you will have to save £163 a month, to achieve the same target.
From these examples, it is clear that the pension Retirement Calculator is an indispensable tool that will really put you in the picture, with regard to how much you need to be saving.
One you decide to set up your pension plan, you will need to establish what type of investor you are, in order to know how you want your pension savings investment. Again, the Retirement Calculator is the tool to use. It contains the Principle First Risk Profiler which will inform you whether you are a cautious, balanced, or aggressive investor.
You can then choose from one of the Principle First Investment Portfolios, which will match your risk profile and provide a ready-made investment recommendation for you. All of this is contained within the Retirement Calculator, but of course, our friendly advisers are always on hand to offer personal advice as well.
