APPROACHING
How to retire with an
income of £2,000 pm
*
If you are 30
Our assumptions*
You will need to invest:
You will have a pot at retirement of:
Your income per month will be:
but real value in 35 years' time will be:
£650 pm
£431,552
£4,000
£2,000
If you are 40
You will need to invest:
You will have a pot at retirement of:
Your income per month will be:
but real value in 25 years' time will be:
£1,250pm
£426,520
£3,709
£2,000
Here is some maths to help you out. We
assume that you will have the equivalent of
£2,000 per month in today’s money (so each
age group ends up with the equivalent value).
We assume that you will have a £2,000 income
until the age of 90 and we assume that your
portfolio grows at 5 per cent on average each
year net of charges. We assume inflation at 2
per cent a year and that you increase your
contributions by 1 per cent each year.
Retire at 65.
We also assume you’re in drawdown and
your pot stays invested over the whole
period of your retirement.
If you are 50
You will need to invest:
You will have a pot at retirement of:
Your income per month will be:
but real value in 15 years' time will be:
£2,050 pm
£427,087
£2,694
£2,000
Use our retirement planner to work out your
own strategy:
www.trustnetdirect.com/retirement/planningfor-retirement
If you are 60
You will need to invest:
You will have a pot at retirement of:
Your income per month will be:
but real value in 5 years' time will be:
£6,750 pm
£423,387
£2,210
£2,000
Your monthly contributions to achieve an
income of £2,000 per month
£8,000
£7,000
£6,000
£5,000
£4,000
£3,000
£2,000
£1,000
£0
Page 42
£6,750
Remember, these figures exclude any state
pension due to you but do not include any tax
liabilities either
£2,050
£650
£1,100
Age 30
Age 40
Age 50
Age 60