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What is a healthy pension pot?

ended 29. April 2024

Elizabeth Anderson, iPaper

Hi all, I'm looking for views on what's a good pension pot?

Obviously there is no right or easy answer to this. But what does a very healthy pension pot look like at age 60 or 66 (state retirement age)?

And what would need to be in your pension aged 25, 30 or 40 to hit this milestone later in your 60s?

Can financial advisers share any anecdotes (anon and without revealing too much identifiable detail) on any client examples?

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Chloe Phillips
Chartered Financial Planner at Pura Vida Financial Planning
First things first, what does a comfortable retirement look like for you? Is it filled with travel, hobbies, or simply the joy of relaxation at home? The first step towards effective retirement planning is to visualise your desired lifestyle. The choices you make here significantly influence how much you'll need. The Retirement Living Standards, based on independent research by Loughborough University, have been developed which can be useful tool for giving us a starting point to picture what our life might look like in retirement. However, it is important to remember your individual circumstances are unique to you.

Do you have the full state pension entitlement? Maybe you have a final salary scheme which offers you a guaranteed income in retirement? These would need to be considered before calculating what is needed in a pension pot. A rule of thumb is to multiply your desired income (after deducting guaranteed income) by 25, to have an idea of the size of the pension pot needed.