How to understand your current provision

So how much are you going to need to fund your long-lasting holiday?

The simplest way to find out is work out your magic number. This helps you calculate how much your pension fund should be to give you the retirement income you want.

By taking into account all your likely living costs, calculate how much annual income you think you might need if you were to retire at 65, allowing for inflation.

Multiply this figure by 35 (keeping in with the current figures staying more of us will live until at least 100) and this gives you your magic number – the retirement fund you will need based on current annuity rates.

The next important step is to start planning for your retirement – and do so now. The earlier you make a start, the easier it is to create a lifestyle you want.

And in doing so, take into account that pensions still represent the best option when investing for retirement.

Whatever choices you make, take action now. The fact is – we are living to a greater age and retirement is going to last longer. As a result, it is essential to save more. The decisions you make today will help determine the standard of living likely to be enjoyed in retirement