{"id":1638,"date":"2023-04-27T11:18:27","date_gmt":"2023-04-27T10:18:27","guid":{"rendered":"https:\/\/discountagent.co.uk\/blog\/?p=1638"},"modified":"2024-03-30T09:19:41","modified_gmt":"2024-03-30T09:19:41","slug":"how-to-create-a-simple-retirement-plan-youll-stick-to","status":"publish","type":"post","link":"https:\/\/discountagent.co.uk\/blog\/how-to-create-a-simple-retirement-plan-youll-stick-to\/","title":{"rendered":"How To Create A Simple Retirement Plan You\u2019ll Stick To"},"content":{"rendered":"\n<p>Retirement, and more specifically, saving for it, can be quite an overwhelming thing to think about, whether you\u2019re ahead of the game at 25 and starting to save or you\u2019re coming towards the end of your career and aren\u2019t happy with where you\u2019re currently at. No matter where you are, we\u2019re here to help you create a retirement plan you\u2019ll stick to. This includes realistically how much you need to retire, considering how much you already have, how to set clear goals and who you should consult if you\u2019re unsure about your plan. Retirement planning doesn\u2019t have to be difficult, which we hope we\u2019re about to show you!&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Much Do You Need To Retire?&nbsp;<\/strong><\/h2>\n\n\n\n<p>The most logical place to start when creating your retirement plan is thinking about realistically, how much you\u2019re going to need to be able to retire. This is all dependent on your lifestyle. If you spend more, like going out for more meals and holidays, then you\u2019re going to need more. For those of you who are looking forward to living a more stripped back life, you\u2019ll need less. You should also take into account the state pension, which everyone who has paid national insurance for 39 years is entitled to. The full new state pension is \u00a3203.85 per week, and you can\u2019t access it until you\u2019re 66, so it\u2019s probably best to calculate without your state pension if you can and to have that as contingency money.&nbsp;<\/p>\n\n\n\n<p>Let\u2019s give a few examples. For a person aged 60 looking to retire in the next few years, who has paid their mortgage off and goes on one holiday per year, perhaps you\u2019ll spend around \u00a318,000 a year. As a general rule, you times your annual retirement expenses by 20-25, so this person will need between \u00a3360,000 and \u00a3450,000 in order to comfortably retire and continue living the lifestyle they are.&nbsp;<\/p>\n\n\n\n<p>For another person aged 60 who is still paying off their mortgage, goes on three holidays per year and generally enjoys a more luxurious lifestyle, they might spend closer to \u00a335,000 a year. So, this person will need between \u00a3700,000 to \u00a3875,000 saved for their retirement.\u00a0<\/p>\n\n\n\n<p>As you can see, there is no right or wrong answer for how much you need to retire, so we\u2019re going to break down how you can realistically budget your retirement expenses.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Create Your Budget&nbsp;<\/strong><\/h2>\n\n\n\n<p>Now, it\u2019s time to figure out exactly how much you\u2019re going to need to save. This might take a good few hours to get right, but trust us, it\u2019s absolutely worth it. When you\u2019re younger and planning out your retirement, of course it\u2019s harder to predict exactly what you\u2019ll be spending, so for people where retirement is a long way off, perhaps plan for the upper end of the spending at \u00a335,000 a year if that\u2019s realistic based on your income and what you\u2019ll need to save, to pre-empt changes in the economy that can\u2019t be accurately predicted at the minute. You can then jump to our next step and start saving based on this. If you\u2019re currently paying off debt, it\u2019s advised that you pay this off first before you start making significant contributions to your pension.&nbsp;<\/p>\n\n\n\n<p>For people who are closer to retirement, you will have a much better idea of how much you\u2019ll be spending. So, break down every type of expense, starting with your essentials such as mortgage payments, bills, food shopping, medicines, car insurance, other insurance, etc. Make sure you have a look around to see if you can cut costs anywhere here, as it can make a big difference. Then look at less essential spending, such as holidays, clothes shopping, meals out, trips with friends, etc. You need to be specific with this and also realistic to begin with, map out how much you want to spend and then if you need to cut down later, you can.&nbsp;<\/p>\n\n\n\n<p>Now you know how much you\u2019ll spend on average per month and year, times the annual figure by how many years of retirement you will likely have. To give you an idea, a 60 year old should plan for 20-25 years of retirement, so if you\u2019re wanting to retire at 50, that would be 30-35 years. So, you know how much you need in total, so now figure out how much you need to save per month.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Establish How Much You Need To Save<\/strong><\/h2>\n\n\n\n<p>So, it\u2019s time to figure out how much you need to be saving each month. Look at how much you\u2019ve got saved already across different pension pots, then make a note of this. Then we\u2019d recommend using a pension calculator to figure out how much you\u2019ll have, and also how much you need to save each month to get to where you want to be. We\u2019d definitely recommend having a few different pension pots, especially if you\u2019re in the UK, as the <a href=\"https:\/\/www.fscs.org.uk\/\" rel=\"nofollow\">FSCS (financial services compensation scheme)<\/a>, which protects your money in case a bank goes bust, only protects up to \u00a385,000 per eligible person, per bank, building society or credit union. So, by the time you\u2019re reaching retirement age, you should have quite a bit more than that. Spreading across different pots for this reason is advised, as although you might make less interest, your money is safer.&nbsp;<\/p>\n\n\n\n<p>Set up direct debits for your savings at the start of each month, then watch your pension pots grow! For people starting their pension savings later in life, you will need to sacrifice more each month, but it will make so much difference when you retire. For some people, utilising assets and <a href=\"https:\/\/discountagent.com\/\">selling your home in Utah<\/a> to downsize might be the best option, to bring your retirement closer!&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Final Thoughts<\/strong><\/h2>\n\n\n\n<p>Follow these three easy steps and saving for your retirement will become much more simple. Be realistic about your spending, as this will make everything so much more accurate, and don\u2019t be afraid to seek financial advice if you\u2019re unsure of what you\u2019re doing. Something important to note is that there are a lot of people out there who can help you with your retirement planning, but just make sure you choose someone well recommended as there are also quite a few <a href=\"https:\/\/wealthrecovery.co.uk\/regulated-broker-recovery\/\" rel=\"nofollow\">broker scams<\/a> that could result in you losing a lot of money. So, just be careful! Get this right and start as early as you can to make your later years all the more enjoyable.&nbsp;<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Retirement, and more specifically, saving for it, can be quite an overwhelming thing to think about, whether you\u2019re ahead of the game at 25 and starting to save or you\u2019re coming towards the end of your career and aren\u2019t happy with where you\u2019re currently at. No matter where you are, we\u2019re here to help you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1641,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[211],"tags":[],"class_list":{"0":"post-1638","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-life-style"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How To Create A Simple Retirement Plan You\u2019ll Stick To<\/title>\n<meta name=\"description\" content=\"How To Create A Simple Retirement Plan You\u2019ll Stick To Retirement, and more specifically, saving for it, can be quite an overwhelming thing\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" 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