How Much You Need to Save for a Comfortable Retirement

New research from consumer champions Which? suggests that in order to secure a comfortable retirement you need to save £130 a month for 40 years

Emma Wall 19 April, 2017 | 2:43PM

What annual salary do you need in retirement in order to feel comfortably off? According to a new survey from consumer champions Which? retired couples need £18,000 a year in order to cover essential expenditure. The house essential outgoings include food, energy bills, transport and housing costs, but if you want a few added extras thrown in – such as an annual holiday in Europe, a few drinks in the pub on the weekend and the odd leisure activity – and the annual requirement grows to £26,000.

Which? calculates that to generate an annual income in of £26,000 retirement, a couple will need a pension pot of £210,000, coupled with the current flat-rate State Pension of £155 a week. Based on the current retirement age of 67, a couple aged 20 should save £131 a month to reach this pension pot goal.

However, if you put off saving for retirement by 10 years this monthly sacrifice rises to £198 a month. Wait until you are 40 and you will need to save £338 a month between you to reach the £26,000 annual income goal. Those savers who do not start saving for retirement until they are 50 will have to put away £633 a month – or £316.50 each – in order to secure a comfortable retirement.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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