Retirement Planning Guide For Salaries From $ 25,000 to $ 100,000 – How Much Do You Need? | Personal finance | Finances
To analyze what the average person should be doing to meet their retirement goals, Mr Norton used the example of a 25 year old who makes £ 25,000 every year and wants to retire at 68, saying his salary could be earlier £. amount to 60,000 in today’s terms.
According to his calculations, that person would have to withhold £ 45,000 – about 75 percent of final early retirement income – to maintain the same standard of living.
This would mean her retirement pension would have to be around £ 507,000.
So how much would you have to pay into your pension?
“Suppose their contributions (including your employer’s contributions) are 12.5 percent of their wages, or about £ 260 a month, and they rise steadily in line with your projected income to around £ 625 a month,” he began.
“In addition to the mandatory eight percent that is automatically paid into the company pension scheme, this person pays another 4.5 percent of their salary into a pension scheme.