You have been operating for a minimum of five decades and it feels like a lot of, does not it? How many times can you dream about that wonderful moment you are ready to package everything in and retire permanently?
Well, based on new research by Aegon that you may need to get accustomed to daydreaming for quite some time!
The Mirror reports that the figure you will need to have at the bank before it is possible to think about retiring is really a whopping £300,000. And not, that isn’t a typo – there are just 6 zeros.
Aegon discovered that the £300,000 are sufficient for somebody about the average annual salary for £27,000 to keep their current lifestyle. This would provide them an income through retirement equal to two-thirds of the previous earning, providing roughly £1,500 per month.
For all those earning £56,000, savings of approximately £612,700 will have to be gathered as a way to keep their lives. This is presuming they might live off only half of the working-age salary with no drastic changes.
Conversely, earners on £13,000 would require savings of about £65,300 so as to retire.
Steven Cameron, pensions director at Aegon, stated: “It is not surprising people are under-saving once you see just how much creating an annual income of £18,000 prices.
“The sum is so high as life expectancies have risen considerably in recent decades and long-term interest rates, where annuities are established, are now quite low.
These figures assume that people are going to have the ability to maintain their income using the entire state pension of £8,300 annually, but it is important to assess what you are really due as a lot of people would get less.