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Gen Z need £3.1m for a comfortable retirement – why it’s not as bad as it sounds
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The i Paper
Figures from Rathbones, a leading wealth management firm, suggest the amount needed for a comfortable retirement for someone who is 25 today would involve a £3.1m pension pot.
Assuming contributions rise by 2 per cent per year and their retirement pot grows 5 per cent a year, this means contributions of £19,200 annually, its analysis shows.
Rathbones says this requires £2.2m in your retirement pot – which is less than £1m in today’s money.
You could enjoy a comfortable retirement with a pot of £4.3m – £2.15m each – according to its calculations.
The full new state pension currently pays £11,973 per year, so a single retiree who gets this immediately has a quarter of their ‘comfortable’ retirement covered.