How much should a pension pot be worth?

TTMCMschine

Hello,
slightly difficult question I know, but how much money should we have in our pension pots by the time we retire?

I imagine that there's a standard £x thousand pounds in the pot will give you £y thousand per year type equation?

Can anyone shed any light please?

EdInvestor

Look at 100k per 5k of income: so if you want an income of 20k, you'll need 400k in the pot.

If you want fancy add-ons like index linking for inflation, spouse and dependants pensions and guarantees, be prepared to pay a lot more. For instance the basic state pension would cost about 150k if bought on the open market.

dunstonh

5% is a good guide for income. Its historically always been achievable.

TTMCMschine

Thanks guys.