APPROACHING
How to retire with an
income of £5,000 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:
£1,700 pm
£1,062,879
£10,000
£5,000
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:
£2,750 pm
£1,079,950
£3,282
£5,000
Here’s some maths to help you out. We assume
that you will have the equivalent of £5,000 per
month in today’s money (so each age group
ends up with the equivalent value). We assume
that you will have a £5,000 income until aged
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:
£5,000 pm
£1,047,325
£6,730
£5,000
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:
£17,000 pm
£1,068,331
£5,520
£5,000
Your monthly contributions to achieve an
income of £5,000 per month
£20,000
£17,500
£15,000
£12,500
£10,000
£7,500
£5,000
£2,500
£0
£17,000
Remember, these figures exclude any state
pension due to you but do not include any tax
liabilities either
£5,000
£1,700
£2,750
Age 30
Age 40
Age 50
Age 60
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