This is a question you should ask yourself if you have never done so. Too many people put money away in a Pension, a nominal amount or an affordable amount, without any real attention paid to what that means.
Putting away £100 per month or £1,000 per month might be not enough, just right, or nowhere near enough. So the question really is how much is enough? If I put that question to you as someone reading this and probably has a Pension or is thinking of starting a Pension, would you know the answer? The job of retirement planning is to know this in advance so that you plan and invest with a purpose.
The truth is that you need to ‘do the numbers’ a little bit, just enough, to give you an idea of what is likely to be a good amount to save up over the time. Without knowing why you are investing then how do you know how to invest, or how much to invest?
So enough of the waffle, you’re probably looking for some answers. If we take 5% as an income rate at which you could convert your Pension into an income for life, then to earn a £10,000 per annum income for life you would need £200,000 in your Pension.
Most people will have a variety of income streams in their retirement e.g. State Pension, Company Pension, Investments and of course the Personal Pension. So it may be that you only need £10,000 per annum income from your Personal Pension in order to complete your set as it were. If that is the case then the need to get your Pension up to £200,000 is very real. That can seem an awfully long way off, but it is certainly much easier to achieve when you know your numbers.