Starting a pension: How much should you save for retirement?

Know how much you need in order to have a comfortable retirement.

13:54 26 January 2013

Let me start by saying the there’s no definite number when answering the question asked on the title. The amount that you’ll need to put into your pension will depend on several factors. Your retirementgoals, the age your started contributing, and your current income should be considered.

However, the safest answer would be to put in as much as possible and to start as early as you can. Saving for your retirement when you’re 25 is never early especially if you’re dreaming about early retirement and exploring the world while you’re still young.

Experts agree that setting aside 15-20per cent of your monthly wage would be great. If you’re starting late, you have to increase your contribution. You can do this each time you get a pay raise or if you suddenly find yourself with extra cash.

To know how much money you’re going to need when you retire, list down all your expenses when that time comes. These include medicines, housing, utilities, travels, etc.

Then, add a little to that amount to prepare for unforeseen expenses and inflation. When you know exactly how much you need, you can easily figure out how much money you need to put in every month until you retire.