Enable’s IFA’s in Bishop’s Stortford know that we all want to find ways to retire comfortably. But if you are worrying that you might run out of cash in your old age or that you are not saving enough for your retirement you are not alone?
One recent study by the Pension and Lifetime Savings Association found that more than half of us (56%) are not confident that we will have enough put away to let us enjoy the lifestyle we want during retirement. Indeed the report also suggested that only one in five of savers believe that they are on track.
Some tips can help you to start your financial planning for retirement. Fidelity International say they have come up with some rules of thumb that savers need to bear in mind to ensure that they will be able to have the kind of comfortable retirement they desire.
Firstly they found that there is something to the power of 7, meaning that households who managed to save seven times their annual household income by the time they hit 68 should be able to retire and maintain a similar standard of living as they had during their working years. What this means, for example, is – if you have a household income of £50,000, you need to put together a pot worth £350,000, a pretty sizeable pension pot.
It might seem a big ask now but Enable’s IFAs know that by creating a target for yourselves and breaking it down into smaller goals can often help you to reach that target. Any saver has to start somewhere, and setting yourself goals and milestones to reach financially can make it a bit more achievable. Fidelity suggests aiming to have the equivalent of your annual salary saved in your 20s, then twice your salary in your 30s, and so on until you hit seven times that salary by 68. Enable’s IFAs can help you find the right pension plan.