How much a young person in the UK needs to save in order to retire comfortably
New research shows that today’s young British should save more than £ more than £ to retire comfortably without wages.
According to a new study, due to the increasing cost of living, when combined with longer life expectations, children between the ages of 18-30 to stay financially independent until the age of 90 after retirement need £ 1,183,363.
The analysis was carried out by the investment and insurance company Çoban Friendly using the average UK household expenditure rates, common debt and proposed six -month Emergency Fund.
The investigation also revealed exactly how much it will be needed to enjoy 25 years in retirement in retirement of 25 -year increase in 25 -year inflation, and in a 5 percent annual return of annual savings or investments.
Max Jarrold, the head growth manager of Shepherds Friendly, said: “Today, young people are faced with the most challenging journey to the financial independence of any generation. The compound effect of inflation.
“Someone in his 20s may need to finance the costs of living for more than 60 years, but because the number is less than less years, the costs for people in the 30s and 40s jumps again, because this is usually the most expensive stage of life, with mortgage, child care and daily expenditures, but for savings.
“This combination of higher expenses and shorter savings windows makes financial freedom particularly difficult and has never been so important with young people who have to do more with careful planning.”
Those who are in their 50s and in the early 60s are slightly less than £ 1 million, and those between 65 and 74 years of age may require approximately £ 500,000. For people over 74 years of age, the amount falls to approximately £ 180,000.
The average British household will have to save £ 743,338 to enjoy 25 years of financial independence. This is based on an annual average annual expenditure of £ 1,168,765 for 25 years with inflation, and an emergency fund of £ 121.525 and a six -month Emergency Fund for 25 years.
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The average annual expenditure for the lowest 10 percent of the UK households is £ 15,551, £ 83,597. Set for inflation requires approximately £ 381.107 to maintain 25 years of financial independence.
The struggle to enjoy retirement increased with the increase in the retirement age of the state Next year, from 66 to 67, that is, millions of workers will have to wait longer for retirement.
