The amount a person should be saving for retirement is different for everyone. The required amount is dependent on several factors. Some of the questions you should think about include…
The lifestyle you envisage will determine what kind of retirement income you will need. Do you see yourself eating out frequently, travelling abroad, joining country clubs, and buying that second home? You may prefer a quieter pace of gardening, DIY around the house and visits to family. Your vision will drive the amount you need to save.
Do you want to maintain the lifestyle you currently have, e.g. downsizing to one vehicle, a smaller home, or travel only once or twice a year?
Knowing the age at which you would like to have the option to stop working will help your advisor determine the capital required to retire comfortably and develop a retirement savings plan.
This has a significant influence on your retirement planning. If you started early enough and have a bulky nest egg saved already, it will make it easier for you to retire comfortably. If your savings are minimal, you might not be able to enjoy the retirement lifestyle you imagined or might have to continue working and postpone retirement for a few years.
This refers to what your savings currently consist of. Do you have company/work pensions, personal pension plans or investments, or will you rely heavily on state pensions/social security?
deVere’s expert financial planners can help you calculate exactly how much you will need to have accumulated to enjoy the lifestyle you’re imagining.
Retiring early requires discipline and commitment to your retirement savings. Your nest egg needs to be substantially larger to fund your longer retirement. Your financial advisor will review your workplace, private, and state pensions to put together a financial plan best suited to your retirement savings needs.
Remember the tax implications of retiring early, as you might not be eligible for the same tax benefits. deVere has the expertise and experience to help you build and manage your wealth before and after retirement.
deVere is one of the world’s most regulated financial advice advisories, offering bespoke financial advice, retirement and investment planning, tax mitigation and wealth management.