Is a £1m pension pot enough for retirement?
“According to figures from Brewin Dolphin, one of the UK’s leading wealth managers, a pension pot of £1m could provide a gross annual income of around £40,000 (4%) per year. Based on a projected growth rate of 5% a year, you would need to put aside £880 each month for 35 years to build up a pot of £1m for retirement. If you were to take £40,000 a year from the pot, which would be provided by a combination of interest and dividends, you could preserve the pension pot itself to leave to family when you die.
On the same basis, and assuming the same growth rate and timescale to retirement, you would need to set aside £660 a month for a fund of £750,000, which would provide an income of around £30,000 a year. You would need around £440 a month for a pension pot of £500,000 which could provide a gross annual income of around £20,000 a year.” To help plan building your pension pot, please get in touch. Read more