Use our Retirement Calculator to
calculate how much you need
to save for retirement
How much money will you need to retire comfortably?
Our retirement calculator, below, helps you to calculate quickly how much you need to save for a comfortable retirement using an average rate of return of 7 per cent annually.
Unfortunately, too many people wait until much too late in life to begin planning for their retirement "budget." Even those who take the time to ponder their options at a young age still often fail to consider such important variables as inflation, interest rates and dividend returns.
Suppose a retirment income of £36,000 per annum will do
When you retire, (hopefully) you’ll have State Pension. For our example, let’s assume you are entitled to State Pension totalling approx £7,000 per annum. You're therefore £29,000 short in order to meet your annual income needs.
So, how much do you need to save for a comfortable retirement?
The next step is for you to decide how mouch money your assets will need to generate - for instance 7 per cent, per annum (say from interest income or from dividends yielding 7 per cent on average per annum).
Using 7 per cent might seem like a high number right now. Interest rates are much lower now, though there are still a few solid 7 per cent dividend payers out there.
It’s also not reasonable to expect that interest rates will remain this low over the remainder of your life. But 7% over long terms, I doubt it.
Anyway in the
below, I have pre-set your expected annual return at 7 per cent. You now just need to insert the amount you require per annum.
Remember our example, above - we need £29,000, so insert 29000 and then click: calculate
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