15000 Annual Pension Is Comfortable

15000 Annual Pension To Be Happy.

The National Employment Savings Trust (NEST) one of the pension scheme set up by Government via the Department for Work and Pensions (DWP) and Personal Accounts Delivery Authority (PADA) to deal with new workplace pension rules where both employers and employees must pay into pension schemes has released some research regarding people that are happier in retirement.

Nest’s research

£15,000 per year pension were comfortable and happy

£20,000 per year pension were even happier

£40,000 per year pension appears to be the topping off point of being happy, any more than this does not make any real difference to quality of life or contentment.

Comment

We have long worked with clients to target fund their pension. Pensions are more expensive that most people think.

Current annuity rates, for example at 5% pa for a 60 year old suggests the following funds are needed:

£15,000 per year pension = £300,000 pension fund needed

£20,000 per year pension = £400,000 pension fund needed

£40,000 per year pension = £800,000 pension fund needed

Retirement needs to be planned early and continuously. Watch the video on this page as to how much you save.