How much is enough?, is a very personal question for you to answer, especially where your target date is 20 or even 30 years in the future. Broadly speaking, you hope that your children are financially independent, that you are mortgage-free, and that you have no significant outgoings. You might want to consider what lifestyle you have now and what you would like to continue into retirement. There are many variables, and these become complicated by factors such as inflation, especially over 20, 30 years.

Traditionally many advisers, myself included, have targeted a percentage of your current income or a set annual income figure as the goal. Unfortunately, this is over-simplistic and, in my experience, not true to real life. In reality, your income needs will change over time. You will likely need a higher income level in the early years, where you are fitter and want to enjoy your new freedom. You may wish to travel and socialise more. As time passes and age catches up with you, your mobility will likely reduce, and your outgoings will inevitably fall accordingly.

All of this makes it difficult to answer the question, “How much is enough?”. At From Acorns Financial Planning, we use Cashflow Forecasting software to model your entire financial future. We run multiple scenarios as we cannot predict what life might throw at us in the future. Cashflow Planning is an invaluable element of our service and helps you release if you are on track for your desired lifestyle.

If you would like answers to the questions, “When will I be financially independent?” or “ When can I retire?” then please contact us on 02886440475 or schedule an initial consultation here.