My friends at the Motley Fool have worked out that, if you are currently 45 years old and want to retire at 65 (or any other 20 year horizon) with a £100,000 nest egg, then you need to save £6.28 a day.
You need to put this amount into an ISA and get an average return of 7% a year. After 20 years you will have £100,000 to supplement your pension. The power of compounding.
£6.28 a day doesn't sound like a huge amount, but the 20 year time horizon might be a bit of a problem. Would be for me, I know that!
Something for you middle-aged youngsters to think about. Time seems to go by much faster after your mid-forties.
Be well.
Tuesday, August 23, 2011
Wednesday, August 17, 2011
PENSIONERS ARE WORSE OFF
You don't need me to tell you that, but there has been some alarming news from Prudential that indicates how 'worse off' we really are. According to them our cost of living is going up some 44% faster than the Retail Price Index. 44%!!
Apparently this is because we spend a lot more of our available income on things that are rising much faster than the inflation rate. Things like fuel and food.
Anyone with extra savings held in cash is likely to be worse off by £278 over the next 12 months as their spending power is reduced by increasing inflation and ridiculously low interest rates. And this is relates to the average savings pot of £19,664, so if you have more than that in savings you're be losing even more spending power.
Pensioners on fixed incomes are suffering disproportionately to the working population and facing higher levels of inflation according to the Pru.
Don't we know it.
Time to take another look around the Retirement Revenue site and get some ideas for trying to make up the difference.
Be well.
Apparently this is because we spend a lot more of our available income on things that are rising much faster than the inflation rate. Things like fuel and food.
Anyone with extra savings held in cash is likely to be worse off by £278 over the next 12 months as their spending power is reduced by increasing inflation and ridiculously low interest rates. And this is relates to the average savings pot of £19,664, so if you have more than that in savings you're be losing even more spending power.
Pensioners on fixed incomes are suffering disproportionately to the working population and facing higher levels of inflation according to the Pru.
Don't we know it.
Time to take another look around the Retirement Revenue site and get some ideas for trying to make up the difference.
Be well.
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