How much will I Need in Retirement?

The million dollar question. How much will I need in retirement?

A good starting point would be to look at your current income and expenses. Think how much will you will need to spend in retirement. You would need a minimum income to cover these expenses. A rule of thumb is that you will need two thirds of your current salary when you retire. This can help you plan your savings and retirement and help you understand where you are currently.

There are many other questions to ask: How can I make my savings last? How much would you want to have when you retire? When will you retire? These questions can be very complex to answer and depend on each person’s circumstances. You would need to be clear of the end goal in mind of what you want to achieve.

At age 55, you can access your pension and use the money, but since the life expectation on average is increasing you might need to reconsider how to do this in the best possible way to benefit you in the long run and making sure you don’t run out of money.

At Oasis Wealth our aim is to find your ‘number’ and help you focus on helping you set the target and achieve your retirement goals. By talking to our Financial Advisors we can help you find your number. We can also assist you with the set up of your pension investment whilst providing effective financial and tax advice on your retirement. Creating a tax-efficient plan.

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested. Tax treatment varies according to individual circumstances and is subject to change. Tax planning is not regulated by the Financial Conduct Authority.

Case Study: Will I have enough to retire?

1) About Jack and Jill
Jack is a 45 year old who is an employee and a higher rate taxpayer. He lives with his wife Jill in Reading. The couple wanted to retire in a couple of years and met with Oasis Wealth to find out if they would have enough money to retire and live the lifestyle they wanted.

2) Before the meeting
Jack and Jill filled out a document including their current assets/ liabilities/ savings/ income/expenses including their pensions, mortgages, and what they planned assets/ liabilities/ savings/ income/expenses would be in the future eg. holidays, new house. And Oasis Wealth analysed this information.

3) During the meeting
Using their analaysis, Oasis Wealth showed Jack and Jill they had obtained more than they desired for retirement and they had an abundant inheritance to pass on.

Jack and Jill can now decide to go on holidays with the family, not work for a year, keep some money for children school fees, and for unexpected shocks. They can do the things that they always wanted to do.

4) Oasis Wealth Recommendations
Oasis Wealth were able to provide Jack and Jill financial comfort as the couple knew they could afford to spend more. From Oasis Wealth’s analysis, it informed Jack and Jill that their children will get a hefty Inheritance tax bill when they die.

Consequently, they wanted another meeting with Oasis Wealth to discuss the relevant options to help them reduce the tax.

The above is a fictional example which was created for illustrative purposes only.

Oasis Wealth will analyse the financial data to create a forecast. This will show your future needs, the rise and fall of your net worth. And it will help you to identify any forecasted deficit or surplus.

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