How much do I need to save for retirement?
What do I need to do to retire?
These are some of the most common questions that we hear from new and existing clients at Howard Wright. If you google these questions, you will find website after website giving generic answers of 10%, 15%, or 20 % of your income.
Whilst any savings are better than no savings, the problem with these generic answers is that they are exactly that, generic. They do not account for the age at which you want to retire, the income you need to provide for your expenditure in retirement or any one-off capital expenditures you may have planned when you retire.
You may also find some websites offering basic calculators, which do provide a little more of a tailored answer. By inputting some basic information, these can provide you with an idea of how much you need to save each month however, they usually rely upon you knowing how much you will need as an income and when you will need it. Two areas we have helped many of our clients to quantify on a regular basis.
At Howard Wright, we take this a step further. Not only do we help clients with saving for long-term goals such as retirement, but we also analyse what could go wrong when targeting your objectives and create a financial plan that incorporates these risks and helps to secure your financial future should the worst happen.
An example of this could be a couple saving for retirement. If one of them were to suffer long-term ill health and be unable to work, would they still be able to provide for their outgoings if they only had one income? Could they still afford to save the required amount each month on top of the regular expenditure to fund for retirement or their other financial goals?
Another, yet similar example is in the event of either death. Would the surviving partner have sufficient income to provide for not only their outgoings but retirement savings as well with less household income?
As you can see, when using the services of a professional financial adviser rather than taking generic advice from a website, you can create a financial plan specific to you and your objectives, and make it robust enough to ensure any long-term illnesses or deaths do not mean your goals cant be achieved.
Free Financial Review
If you would like to discuss your retirement objectives with Ashley Smith one of our Chartered Financial Planners at Howard Wright, you can call him on 0345 688 4939 or you can fill in our enquiry form below, it only takes 20 seconds to complete. We look forward to hearing from you and seeing how Ashley can help.
Disclaimer
This article contains information from sources believed to be reliable but no guarantee, warranty, or representation, express or implied, is given as to its accuracy or completeness. Howard Wright Ltd does not undertake any obligation to update or revise any future statements. Past performance is not a reliable indicator of future results. Investments can go down as well as up and actual results could differ materially from those anticipated. This article is for information purposes only and has no regard to the specific investment objectives, financial situation or particular needs of any person as such, the information contained in this article is not intended to constitute, and should not be construed as, investment or financial advice. Appropriate personalised advice should be taken before entering into any transactions. No responsibility can be accepted for any loss arising from action taken or refrained from based on this publication. Howard Wright Ltd is Authorised and regulated by the Financial Conduct Authority.