Your “number” refers to the amount of money you need to achieve financial independence and retire.
Although multiple factors determine your number, you can boil it down to two questions:
• When do you want to retire?
• How much income will you need in retirement?
Deciding when you want to retire will likely affect how much income you have in your retirement.
When it comes to how much you will need, there are several expenses to consider:
• Regular expenditure
• Big expenses
• Care costs
• Inheritance
You might then consider some unknown factors that will influence your retirement income, like life expectancy, market performance, and inflation.
A financial planner can use cashflow modelling to map your expenses against different future scenarios.
Knowing how much is “enough” for you could mean you can retire earlier than expected.
If you’re still unsure, the safe withdrawal rate can guide how much you withdraw from your retirement fund each year. The method recommends you only withdraw a small percentage of your portfolio each year. It is best to determine your rate by working with a financial planner.
We can help to ensure your desired retirement age, savings, and income align. To find out more, get in touch.
For a free consultation, call 0117 959 6499 or email info@perennialwealth.co.uk
Trym Lodge, 1 Henbury Road, Bristol BS9 3HQ
