How much should I be saving for my retirement?

Question

news today says we are not saving enough for retirement.Im 27 and have a pension through work but how much money should I be saving besides this?

Answer 1

10% of your Gross income. :-})

Answer 2

First thing is to pay off any debts - that will make you far more of a "profit" than any investment. The rough guideline is to save (including your pension) half your age as a percentage of your wage.

So if you are 27 you should be saving 13.5% of your income. When you hit 30 it should be 15% and so on.

Answer 3

As much as you possibly can... every penny you save now is worth 10x what you will save later ..

Numerous examples exist of people who started at age 20 and saved only for 10 years, ending up with a much higher Pension than some-one who started at age 30 and saved for 30 years ..

If you are paying higher rate tax it might be worth going to an IFA ... for most people the best approach is to join your Company Pension Scheme and ask them about AVC's (Additional Voluntary Contributions)... if they don't offer AVC's you can start to look elsewhere (do your own research - only the very RICH and very POOR rely on others to manage their finances )

Answer 4

You should talk with an IFA - he or she will advise about how much and where to invest it for best returns after retirement; this is an on-going association as your advisor will keep reviewing your investments.
Perhaps the first thing you should do (for the moment) is to make sure that you buy your full allowance of ISA's every year.

Answer 5

you need to save way more than you think to live comfortable in your golden years.

for me to retire on $30,000/year, I need something like $375,000 saved? I'd have to start saving today about $394 a month for the next 25 years or so.

see chart below in link to figure yours out.

Answer 6

http://uk.news.yahoo.com/rtrs/20070719/tuk-uk-britain-pensions-fa6b408.html

The above link might help you.