Will I have a comfortable retirement?

Question

Would it be possible that you can give me a rough estimate of how much you think I'd be living on each week if I was to share some of my financial information with yourself? I've been saving about £450 per month into a savings account since the age of 18 and I'm now 28, if I were to continue doing this and maybe adding more as time goes on up until the day I retire just how much would I have to play with each week? how much of a state pension would I get? Am I wasting my time or am I doing a good thing by saving for my retirement so early in my life?

Thanks for your help.

Answer 1

Keep doing what you're doing and you will be just fine.  Hats off to you!

Answer 2

You are extremely intelligent to start saving for your retirement so early.  The magic of compounding interest will make you wealthy.  I am hoping that you are putting your money into one of those 7% savings accounts that I read about in the British papers.  If so, your money will double every 10 years or so and you would have about 1.2 million pounds at age 58.   Please interview a financial planner or three and have them work up a plan for you.  Pick the plan and planner that you are most comfortable with and start watching your money grow to a big tidy sum.  I am not familiar with retirement vehicles in the UK (in the US we have Roth IRAs, 401(k)s, and other ways to save for retirement), but a financial planner will be able to point you in the right direction.  Good luck and keep up the good work.

Answer 3

You would make a lot more if you had some wise investments rather than a savings account.  Talk to an investment counselor about setting up a retirement or an income fund... FIVE STAR ONLY...  

Answer 4

hello are you married?

Answer 5

Assuming that you keep doing this for the next 20 years and that you average a 10% return for all 30 years of my assumption.  You should have over a million pounds saved.  If you can afford to add more to your savings/retirement account, as you earn more, you should have a very comfortable retirement.

I'm in the US, so I can't tell you how much of a state pension that you will get.  If your state pension system is anything like Social Security in the US, I think you would get a statement in the mail every year explaining your benefits.

By saving early, you will be able to retire that much earlier if you so desire.  Using my example, you should be able to afford to retire before you are 50.  

Keep saving.  It will be worth it.  I wish I started as early as you did.