How Much is Enough?
When you stop working, your earning capacity will come to an end but as you know the ongoing costs of living will not! It’s fair to say that each individual will still need a substantial regular income to maintain a decent standard of living. So, the question to be asked is ‘where will this income come from’? Your pension will almost certainly be your main source of income after you have retired.
Planning for retirement is an important step to take, and it’s never too soon or too late to start planning your pension.
So how much is enough?
Financial safety is going to be different for everyone, for some its paying the bills and not having to worry about money, we call this Financial independence. For me , its going to the airport with a one way ticket and leaving the decision to return until much later.
A recent study in the Irish Times indicated that the average household living expenses of two adults and two kids is €40k per annum so if you plan to retire at 60 and live for 30 years your pension pot needs to be €1.2m. obviously when the kids have flown the expenses should tail back somewhat and the ultimate target number decreases, this with time value of money means that a sum of €700k-€800k inflation adjusted should be a realistic goal for most couples.
How close are you to reaching this?
Click on the link below, download our fact find, and complete your financial fact find to find out how far you have progressed along the journey. Its also your first step towards attaining your financial Nirvana.
It should take about 5/10 minutes, a reasonable investment of your time to fast track to your financial goal