The Rule of Thumb with regards to accumulating pensions and investments

In 2024, the UK average salary is £33,696.

As a rule of thumb, you should have accumulated an investment/pension pot equivalent to 1 year's salary by the age of 30. For the average wage earner, this equates to £33,696.

By 40 you should have three times average salary, so £101,088.

By 50 it is six times, so £202,176.

At 60 it is eight times, so £269,568.

And at 67 (state pension age) it should be ten times, so £336,960.

Please note these are 2024 figures so the figures needed will increase in line with wages/inflation.

Your own income may be higher or lower than the average, and YOUR figure is the only important one, however people often ask me how they are doing compared to others, so please take these figures as a general guide only.

Financial advice will help you work out "your number", the amount you will need to ensure you do not run out of money before you die. Nothing can beat a personalised financial plan, built by us and our clients, using cutting-edge cashflow planning software.

More News, Insight & Opinion

Inheritance Tax Planning

Trying to pass on as much as your wealth as possible to your children is getting harder and harder, due to the freezing of the IHT (Inheritance Tax) thesholds since 2009. Continue

Investment Bonds

An investment bond is a packaged investment offered by a life company as opposed to an investment company. They work differently to investment company package products (known as General Investment Accounts or GIAs). Continue

Continuing Regular Savings

The number one factor in building a retirement or investment pot is investing regularly over the long-term and keeping it going until the day when you need to draw down on your investments or pension pot. Continue

Discretionary Trusts v Protective Property Trusts

Putting a trust in your Will to make sure your loved ones inherit something is a very good thing. We commonly see PPTs (Protective Property Trusts) in Wills but sometimes think a DT (Discretionary Trust) might be a better solution in many cases. Continue

The Great Sale

Currently there is a sale of the great companies of the World on and you should seize the opportunity to buy discounted shares. Continue

Inflation - a cancer on your Wealth

It is commonly believed that when you retire, your number one priority should be the preservation of your capital. Continue

News, Resources, Insight and Opinion from Browning Financial Planning