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What Is A Good Retirement Nest Egg?

A good retirement nest egg is one that will provide you with the income you need to live comfortably throughout your retirement years. There is no one-size-fits-all answer when it comes to calculating how much money you'll need, but a good rule of thumb is to have enough saved up to cover 80% of your pre-retirement income.

There are a number of things you can do to help ensure you have a solid retirement savings plan in place:

Start saving as early as possible: The sooner you start saving for retirement, the more time your money will have to grow. Try to contribute as much as you can each month so you can build up a sizeable nest egg. It's never too early to start!

Invest your savings wisely: Choosing the right investment mix can help your money grow faster. This is easier said than done however, so best to speak with an expert before starting.

Review your expenses: Make sure you are living within your means and aren't overspending on unnecessary items. This will help ensure you have more money available to save for retirement. By reviewing your finances, you ensure your future income will allow you to enjoy the lifestyle you want. You should also consider how you'll stay active and social after you leave work.

Avoid taking out unnecessary debt: Whilst you may carry some debt until you retire, such as a mortgage. It is a good aim to be debt free by the time you retire. If you borrow money to cover your expenses, you'll have less available to set aside for retirement.

It's not necessarily about money, it's about income

When it comes to determining your retirement "number," it's important to remember that it isn't about picking a specific amount of savings. Let's say your goal is a £500,000 nest egg, this logic could be faulty.

With that in mind, you should start with a desired lifestyle and the associated cost of maintaining it. You can then work backward from there. This is typically 80% of pre-retirement income but not always. We can help to get you there.

Retirement with Schofield

At whatever point in your career, you should plan for retirement. There are several things you can do right now to make sure you have the retirement you desire. The financial planning that is right for you will be different depending on where you are on life's journey.

Contact our team of expert independent and chartered financial advisers right now if you require assistance reviewing your finances, assessing whether or not you're on track with your pension plans, or assisting you in making any modifications.

This article is for information purposes only. It does not constitute any financial or investment advice. Please contact us if you wish to proceed with any course of action suggested in this article.

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