Savings per month

Ly81

Hi all,
Wondering what percentage it is wise to put into ‘savings’ each month?

MallyGirl

How long is your piece of string. No one can answer such a question.

I'll ask you some instead
Are you putting enough in your pension?
How much 'spare' cash do you have each month?
what are your goals?
Do you have commitments/dependents?
How old are you?

grumiofoundation

As above depends what you mean by savings? Whether you would include mortgage payments, pension, investments?

But surely the answer is - as much as possible?

Ly81

9.5% into pension - nhs.

Roughly around £400 - 500 left per month after all bills/other spending. This includes a mortgage.

38 years old. No children.
Just over £8000 is savings.

Aim is retirement!

Bravepants

Well I posted this in another thread earlier, but it may be useful here too...


https://theescapeartist.me/2019/11/09/how-to-build-a-compounding-machine/

NedS

Ly81 wrote: »

9.5% into pension - nhs.

Roughly around £400 - 500 left per month after all bills/other spending. This includes a mortgage.

38 years old. No children.
Just over £8000 is savings.

Aim is retirement!

Rather than asking how much should I save, I'll offer this pearl of wisdom: The more you save, the sooner you will reach your goal of retirement.


So I wouldn't worry about how much you save, instead worry about saving as much as you can, as regularly as you can. Then look at what is the most tax efficient way for you to deploy these savings (probably in a pension)

jimjames

15%. But it could be more or could be less depending on your situation

Ceme3000

In your position I would ensure you have enough in cash to cover emergencies, unemployment, and big ticket items such as new car, boiler etc. When you are comfortable with this buffer then put anything spare into a pension. You can then use this as sort of bridging pension to retire early until your NHS pension kicks in. Obviously pension savings are completely out of reach until you are old enough to access them, so if you have any other savings goals such as a holiday or home improvements etc then you will need to plan accordingly.

As to how much, with retirement as your aim their are various retirement calculators online and you could google FIRE for further inspiration.

Good luck.

JohnWinder

Here’s an approach to give you a feel for an answer relevant to you:
Decide how much you need as savings when you retire, when you want to retire, assume a return rate on your investments of 2% + inflation/year, then plug a few guesses into an online future value calculator in different combinations to find what suits you. https://www.calculator.net/future-value-calculator.html

Thrugelmir

Ly81 wrote: »

Aim is retirement!

Don't wish your life away.

jamei305

Ly81 wrote: »

Roughly around £400 - 500 left per month after all bills/other spending.

Isn't this your answer? What else will you do with this money each month other than save it?