Setting your target retirement income
If you were planning on renovating your house, getting married or going on a big holiday, wouldn’t you want to know how much to save? Planning for retirement shouldn’t be any different and knowing how much you’ll need is key.
To make sure you’ll have enough income for your future, you’ll need to be saving the right amount now. Setting yourself a target is a great way to measure whether or not you need to make any changes to how much you contribute. Remember, if you increase your contributions, the Society will increase their contribution too (up to a maximum of 11% whilst you remain employed by YBS).
Use Fidelity’s retirement calculator to help set your target. This helps you to build up a picture of the retirement lifestyle you want and find out how much it could cost.
For more guidance around setting a target retirement income, you could also take a look at the Retirement Living Standards set by the Pension and Lifetime Savings Association (PLSA).
Fidelity’s retirement calculator and the PLSA’s living standards will help give you an idea of how much income you might need in retirement. Once you’ve set your target, it’s really important to work out whether you’re on track. Remember to include how much State Pension you might receive and to factor in any other savings you have too.
Contact XPS for a retirement illustration to find out what level of benefits you’re projected to receive and see how they measure up against your target.