Revealed: The exact amount every generation needs to save for a comfortable retirement
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How much you should save in your 20s for a ‘comfortable’ retirement
- Research indicates that individuals in their 20s need to save nearly £500 monthly to achieve a comfortable retirement, with this amount increasing significantly with age.
- A comfortable retirement is defined by the Pensions and Lifetime Savings Association (PLSA) as an annual income of £43,900 for a single person, allowing for financial freedom and luxuries.
- To reach this comfortable retirement by age 65, a target pension pot of £700,000 is considered ideal.
- Retirement income can be managed through annuities, which provide a lifelong income, or drawdown options, where the pot remains invested with income drawn from it.
- Experts recommend saving multiples of one's salary at different life stages, aiming for one times salary by age 30 and six times by age 60, though many currently fall short of these targets.