Save your way out of the grind

Planning golden future helps build up a pension

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This week I celebrated my 51st birthday, and it got me thinking of a question that I am often asked, usually as a passing comment when people know what I do: how much do I need for retirement?

Although it’s a simple question, the answer is complex.

However, the clever folks at Fidelity have done some research, and their views can act as a useful barometer for your retirement planning.

How much do I need to have saved?

It depends on when you want to retire, and what you want to do when you get there, but Fidelity have come up with a factor which will certainly help you benchmark yourself against their research.

They found that at age 30 you should have one times your salary in retirement funds; at age 35, two times; at 40, three times; 45 four times; 50 six times; 55 seven times; 60 eight times; and when you reach 67, 10 times. Now look at your retirement funds. How do you compare?