When it comes to retirement savings, how much is enough?

One can never have too much saved for retirement, but the reality is most have too little saved.

• Cost of living and inflation is on the rise
• People are living longer so retirement funding must stretch further

Considering these factors, how would you determine how much to save?

There are many schools of thought from experts on this. These include recommending 10x, 15x, or even 20x your annual income, or calculating need on 75-80% of your current income.

Each person’s financial situation and plans are unique, and just so are each person’s retirement requirements. Some might want a lavish lifestyle of travelling and socialising, whilst others would prefer a comfortable retirement with family and their hobbies at home.

No matter what you prefer, your advisor needs to identify these factors first before they can plan your retirement. It is important to have realistic expectations e.g. you cannot save small contributions and then expect a lavish luxurious retirement. Ideally you would aim for a similar lifestyle as you currently have.

 You need to have a clear picture of how you see your retirement.

• What will your main expenses be?
• Will you be travelling and taking many vacations, or are you happy with one annual vacation or a few local trips?
• Will your retirement savings cover just yourself or your spouse as well?
• Will you relocate or retire abroad?

Your advisor will offer suitable retirement savings options that suits your needs and look at your retirement plan to determine what contributions are needed to reach your goal.

Time is the biggest booster for your retirement and the sooner you start the better. [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere advisor for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.