Scroll through to find out more about Helen and her plan's for retirement. With retirement a long way off you'll see what her current contributions will mean for her when she does reach retirement and if she's on track to reach the suggested level of savings she might need. The following is based on a number of assumptions including future fund performance, salary growth and future inflation. To the extent that future market conditions do not match those assumptions, the position will be different in practice.
What does this mean for Helen?
It would be a good idea for Helen to consider some general targets to find out if she is on track for a comfortable retirement.
Based on her circumstances, even assuming a full state pension, Helen is not on track to receive the target level of income of £31,000 (50% of £62,000 salary) that she may require. Helen therefore needs to take action now and the sooner she makes changes the more likely it is she can have a comfortable retirement.
What can Helen do?
Helen should check any other sources of retirement savings she has and take account of these when considering the target level of retirement income. If there still looks to be a shortfall she can consider increasing her contributions or delaying her retirement. By way of illustration, if Helen were to delay her retirement to 68 her fund value would increase to £274,500 at retirement date with an annual projected retirement income of £13,700 each year.
Important Note
These figures are intended for illustration only and the level of income you need will vary depending on your circumstances. You should take independent financial advice if you are unsure. Most people will qualify for a state pension in addition to any workplace or personal pension savings. The full state pension is currently worth around £11,502 per year. More information on the state pension can be found at www.gov.uk/check-state-pension